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The Regional Development Trap in Europe

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  • Diemer, Andreas
  • Iammarino, Simona
  • Rodríguez-Pose, Andrés
  • Storper, Michael

Abstract

The concept of regional development trap refers to regions that face significant structural challenges in retrieving past dynamism or improving prosperity for their residents. This article introduces and measures the concept of the regional development trap for regions in Europe. The concept draws inspiration from the middle-income trap in international development theory but widens it to shed light on traps in higher-income countries and at the regional scale. We propose indicators—involving the economic, productivity, and employment performance of regions relative to themselves in the immediate past, and to other regions in their respective countries and elsewhere in Europe—to identify regions either in a development trap or at significant near-term risk of falling into it. Regions facing development traps generate economic, social, and political risks at the national scale but also for Europe as a whole.

Suggested Citation

  • Diemer, Andreas & Iammarino, Simona & Rodríguez-Pose, Andrés & Storper, Michael, 2022. "The Regional Development Trap in Europe," CEPR Discussion Papers 17371, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17371
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    Cited by:

    1. Andrés Rodríguez-Pose & Lewis Dijkstra & Hugo Poelman, 2024. "The Geography of EU Discontent and the Regional Development Trap," Economic Geography, Taylor & Francis Journals, vol. 100(3), pages 213-245, May.
    2. Andrés Rodríguez-Pose & Javier Terrero-Dávila & Neil Lee, 2023. "Left-behind versus unequal places: interpersonal inequality, economic decline and the rise of populism in the USA and Europe," Journal of Economic Geography, Oxford University Press, vol. 23(5), pages 951-977.
    3. Camilla Mastromarco & Laura Serlenga & Yongcheol Shin, 2023. "Regional Productivity Network in the EU," CESifo Working Paper Series 10404, CESifo.
    4. E. Marrocu & F. Aresu & R. Paci, 2024. "EU funds and TFP growth: how the impact changed over time and space," Working Paper CRENoS 202412, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    5. González Laxe, Fernando & Armesto Pina, José Francisco & Sanchez-Fernandez, Patricio, 2023. "Galicia y las trampas del Desarrollo [Galicia and the "Development traps"]," MPRA Paper 116165, University Library of Munich, Germany, revised 28 Jan 2023.
    6. Kira Gartzou-Katsouyanni, 2024. "Obstacles to local cooperation in fragmented, left-behind economies: an integrated framework," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 17(2), pages 359-374.
    7. Rodríguez-Pose, Andrés & Bartalucci, Federico, 2023. "Regional vulnerability to the green transition," Single Market Economics Papers WP2023/16, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (European Commission), Chief Economist Team.
    8. Samovoleva, Svetlana, 2023. "Окна Возможностей И Ловушки При Переходе К Собственным Инновациям [Transition toward own innovation: the windows of opportunity and traps]," MPRA Paper 119314, University Library of Munich, Germany.
    9. Andrés Rodríguez-Pose & Federico Bartalucci, 2024. "The green transition and its potential territorial discontents," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 17(2), pages 339-358.
    10. Cutrini, Eleonora & Mendez, Carlos, 2023. "Convergence clubs and spatial structural change in the European Union," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 167-181.
    11. Francesco Cappellano & Francesco Molica & Teemu Makkonen, 2024. "Missions and Cohesion Policy: is there a match?," Science and Public Policy, Oxford University Press, vol. 51(3), pages 360-374.
    12. Harald Bathelt & Maximilian Buchholz & Michael Storper, 2024. "The nature, causes, and consequences of inter-regional inequality," Journal of Economic Geography, Oxford University Press, vol. 24(3), pages 353-374.
    13. Pierre-Alex Balland & Ron Boschma, 2024. "An Evolutionary Approach to Regional Development Traps in European Regions," Papers in Evolutionary Economic Geography (PEEG) 2420, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2024.
    14. Di Matteo, Dante & Cardinale, Bernardo, 2023. "Impact of high-speed rail on income inequalities in Italy," Journal of Transport Geography, Elsevier, vol. 111(C).
    15. Michiel Gerritse & Zhiling Wang & Frank van Oort, 2024. "Industrial Transfer Policy in China: Migration and Development," Tinbergen Institute Discussion Papers 24-020/VIII, Tinbergen Institute.
    16. Ariel L. Wirkierman & Tommaso Ciarli & Maria Savona, 2023. "A taxonomy of European innovation clubs," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 1-34, April.
    17. Kemeny, Tom & Storper, Michael, 2022. "The changing shape of spatial inequality in the United States," SocArXiv wnd8t, Center for Open Science.
    18. Rodríguez-Pose, Andrés & Terrero-Dávila, Javier & Lee, Neil, 2023. "Left-behind vs. unequal places: interpersonal inequality, economic decline, and the rise of populism in the US and Europe," CEPR Discussion Papers 18049, C.E.P.R. Discussion Papers.
    19. Henry Wai-chung, 2023. "From Regional to Global and Back Again? A Future Agenda for Regional Evolution and (De)Globalized Production Networks in Regional Studies," Papers in Evolutionary Economic Geography (PEEG) 2312, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2023.
    20. Tiganasu, Ramona & Lupu, Dan, 2023. "Institutional quality and digitalization: Drivers in accessing European funds at regional level?," Socio-Economic Planning Sciences, Elsevier, vol. 90(C).
    21. Gartzou-Katsouyanni, Kira, 2024. "Obstacles to local cooperation in fragmented, left-behind economies: an integrated framework," LSE Research Online Documents on Economics 120795, London School of Economics and Political Science, LSE Library.
    22. Mitze, Timo & Breidenbach, Philipp, 2023. "The complex regional effects of macro-institutional shocks: Evidence from EU economic integration over three decades," Ruhr Economic Papers 1007, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    23. Bathelt, Harald & Buchholz, Maximilian & Storper, Michael, 2024. "The nature, causes, and consequences of inter-regional inequality," LSE Research Online Documents on Economics 123014, London School of Economics and Political Science, LSE Library.
    24. Sebastiano Cattaruzzo & Giancarlo Corò, 2023. "Understanding Erasmus mobility in European regions: a quantile-based approach," Working Papers 2023: 25, Department of Economics, University of Venice "Ca' Foscari".
    25. Alicia Gómez-Tello & María-José Murgui-García & María-Teresa Sanchis-Llopis, 2023. "Agglomeration and human capital: an extended spatial Mankiw-Romer-Weil model for European regions," Working Papers 2023.11, International Network for Economic Research - INFER.

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    More about this item

    Keywords

    Development trap; Middle-income; Economic growth; Employment; Productivity; Regions; Europe;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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