IDEAS home Printed from
   My bibliography  Save this paper

European Integration and Domestic Regions: A Numerical Simulation Analysis


  • Arne Melchior


Does European economic integration create more inequality between domestic regions, or is the opposite true? We show that a general answer to this question does not exist, and that the outcome depends on the liberalisation scenario. In order to examine the impact of European and international integration on the regions, the paper develops a numerical simulation model with nine countries and 90 regions. Eastward extension of European integration is beneficial for old as well as new member countries, but within countries the impact varies across regions. Reduction in distance-related trade costs is particularly good for the European peripheries. Each liberalisation scenario has a distinct impact on the spatial income distribution, and there is no general rule telling that integration causes more or less agglomeration.

Suggested Citation

  • Arne Melchior, 2009. "European Integration and Domestic Regions: A Numerical Simulation Analysis," CASE Network Studies and Analyses 0378, CASE-Center for Social and Economic Research.
  • Handle: RePEc:sec:cnstan:0378

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Roman Mogilevsky, 2004. "CIS-7 Perspective on Trade with EU in the Context of EU Enlargement," CASE Network Studies and Analyses 0282, CASE-Center for Social and Economic Research.
    2. Aziz Atamanov & Matthias Luecke & Toman Omar Mahmoud & Roman Mogilevsky & Kseniya Tereshchenko & Natalia A. Tourdyeva & Ainura Uzagalieva & Vitaly Vavryschuk, 2009. "Income and Distribution Effects of Migration and Remittances: an Analysis Based on CGE Models for Selected CIS Countries," CASE Network Reports 0086, CASE-Center for Social and Economic Research.
    3. Marek Dabrowski & Radzislawa Gortat, 2002. "Political Determinants of Economic Reforms in Former Communist Countries," CASE Network Studies and Analyses 0242, CASE-Center for Social and Economic Research.
    4. Aziz Atamanov & Roman Mogilevsky, 2008. "Technical Assistance to CIS Countries," CASE Network Studies and Analyses 0369, CASE-Center for Social and Economic Research.
    5. International Monetary Fund, 2007. "Modalities of Moving to Inflation Targeting in Armenia and Georgia," IMF Working Papers 07/133, International Monetary Fund.
    6. Vladimir Popov, 2000. "Shock Therapy Versus Gradualism: The End Of The Debate (Explaining The Magnitude Of Transformational Recession)," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 42(1), pages 1-57, April.
    7. Marek Dabrowski & Artur Radziwill, 2007. "Regional vs. Global Public Goods: The Case of Post-Communist Transition," CASE Network Studies and Analyses 0336, CASE-Center for Social and Economic Research.
    8. Polterovich, Victor & Popov, Vladimir, 2005. "Democracy and Growth Reconsidered: Why Economic Performance of New Democracies is not Encouraging," MPRA Paper 21606, University Library of Munich, Germany.
    9. Thorsten Drautzburg & Andrea Gawrich & Inna Melnykovska, 2008. "Institutional Convergence of CIS Towards European Benchmarks," CASE Network Reports 0082, CASE-Center for Social and Economic Research.
    10. Malgorzata Jakubiak & Anna Kolesnichenko & Wojciech Paczynski & John Roberts & Sinan √úlgen, 2007. "The New EU Frontier: Perspectives on Enhanced Economic Integration," CASE Network Reports 0071, CASE-Center for Social and Economic Research.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Regional inequality; international trade; European integration.;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sec:cnstan:0378. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aleksandra Polak). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.