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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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