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Market Potential and Border Effects in Europe

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Listed:
  • Michael Pfaffermayr

    (WIFO)

  • Peter Huber

    (WIFO)

  • Yvonne Wolfmayr

    (WIFO)

Abstract

We estimate a linear approximation of the market potential function for Europe as derived in geography and trade models. Using a spatial econometric estimation approach, border effects are identified by a differential impact of nearby regions' purchasing power, depending on whether two regions are located within the EU15 or outside the EU15. Our results reveal substantial market potential effects on nominal wage rates. We also find significant border effects between EU15 and non-EU15 countries. Our estimation results suggest that the enlargement of the EU in May 2004 may lead to pronounced wage effects in the new member states, but to relatively small ones for the existing members and that regional disparities within new member states will increase.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Michael Pfaffermayr & Peter Huber & Yvonne Wolfmayr, 2004. "Market Potential and Border Effects in Europe," WIFO Working Papers 235, WIFO.
  • Handle: RePEc:wfo:wpaper:y:2004:i:235
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    File URL: https://www.wifo.ac.at/wwa/pubid/25324
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    References listed on IDEAS

    as
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    Cited by:

    1. Szabolcs Szanyi, 2012. ""A Szatmár-Beregi sík természeti értékei" - Tervezet egy nemzetközi bioszféra rezervátum kialakítására," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 9(1), pages 56-64.
    2. Mátyás Jaschitz, 2012. "Együtt vagy szétválasztva? Kísérletek a két Komárom térszerkezeti súlyának megállapítására," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 9(1), pages 33-52.
    3. Annekatrin Niebuhr, 2008. "The impact of EU enlargement on European border regions," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 3(3/4), pages 163-186.
    4. Tímea Tünde Csetnek, 2012. "Kapacitás-és intézményfejlesztés a román-magyar határ menti övezetben," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 9(1), pages 104-109.
    5. Salas-Olmedo, María Henar & García, Patricia & Gutiérrez, Javier, 2015. "Accessibility and transport infrastructure improvement assessment: The role of borders and multilateral resistance," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 110-129.
    6. András Ricz, 2012. "A határon átívelő programok hatásai Vajdaság területi fejlődésére - az ezeken alapuló területi együttműködések továbbfejlesztésének lehetőségei," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 9(1), pages 90-103.
    7. Dóra Egervári, 2012. "Határtalan információáramlás? - Az információhoz és dokumentumokhoz való szabad hozzáférés esélye és lehetősége Baranyában és Szlavóniában," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 9(1), pages 65-74.
    8. Gergő Medve-Bálint & Sara Svensson, 2012. "A helyi önkormányzatok eurorégiókban való részvétele Közép-Európában," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 9(1), pages 19-32.
    9. Ferenc Szilágyi, 2012. "Az Érmellék mint határ menti kistérség stratégiai értékelése és lehetséges jövőbeli státusza," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 9(1), pages 75-89.
    10. Maria Florencia Granato, 2011. "REGIONAL NEW ECONOMIC GEOGRAPHY (refereed paper)," ERSA conference papers ersa10p747, European Regional Science Association.
    11. Niebuhr, Annekatrin & Schlitte, Friso, 2008. "EU enlargement and convergence: Does market access matter?," HWWI Research Papers 1-16, Hamburg Institute of International Economics (HWWI).
    12. Lóránt Bali, 2012. "A horvát-magyar határ menti együttműködés főbb aspektusai és leképeződései Barcs és Zala megye példáján," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 9(1), pages 53-55.
    13. János Pénzes & Gergely Tagai, 2012. "The potential Effects of the "melting" of state borders on the border areas of Hungary," Eszak-magyarorszagi Strategiai Fuzetek, Faculty of Economics, University of Miskolc, vol. 9(1), pages 5-18.

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