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European Integration and the Case for Compensatory Regional Policy

  • Christiane Krieger-Boden

The ongoing process of European integration is likely to increase trade and factor mobility thereby increasing interregional competition and affecting the interregional division of labor. From a theoretical standpoint, rising specialization and polarization of European regions may result from this process, and may entail a growing core-periphery-divide of regional income. Such a supposition evokes questions on the need of an accompanying compensatory regional policy and its adequate design. I find that a case for regional policy cannot be denied, but that the EU largely overstates the need for such a policy at EU level, and should abstain from direct structural interventions into regional economies.

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Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1135.

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Length: 38 pages
Date of creation: Nov 2002
Date of revision:
Handle: RePEc:kie:kieliw:1135
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  1. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 142, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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  12. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
  13. Ziltener, Patrick, 2001. "Wirtschaftliche Effekte der europäischen Integration: Theoriebildung und empirische Forschung," MPIfG Working Paper 01/7, Max Planck Institute for the Study of Societies.
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  25. repec:ags:hiiedp:26137 is not listed on IDEAS
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