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European integration and the case for compensatory regional policy

  • Krieger-Boden, Christiane


The ongoing process of European integration is likely to increase trade and factor mobility thereby increasing interregional competition and affecting the interregional division of labour. From a theoretical standpoint, particularly on the basis of the New Economic Geography (NEG), rising specialization and polarization of European regions could result from this process, and could entail a growing core-periphery-divide of regional income. Hence, there may be winning and losing regions of the integration process, according to the way industrial concentration and regional specialization takes place. Such an supposition evokes questions on the need of an accompanying compensatory regional policy, and whether it can be justified from an efficiency and/or distributional perspective. Also, questions arise as to the adequate design of such compensatory regional policy, with respect to institutions, measures, and recipients. The proposed paper will start reviewing the case for regional policy in Europe on theoretical and empirical grounds. It will then discuss some options for an efficient European regional policy, and compare it to the actual EU regional policy.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p240.

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Date of creation: Aug 2002
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Handle: RePEc:wiw:wiwrsa:ersa02p240
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  1. Krieger-Boden, Christiane, 2000. "Emu And The Industrial Specialization Of European Regions," ERSA conference papers ersa00p215, European Regional Science Association.
  2. Puga, Diego, 1997. "The Rise and Fall of Regional Inequalities," CEPR Discussion Papers 1575, C.E.P.R. Discussion Papers.
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  8. Bickenbach, Frank, 2000. "Regulation of Europe's network industries: the perspective of the new economic theory of federalism," Kiel Working Papers 977, Kiel Institute for the World Economy (IfW).
  9. Krieger-Boden, Christiane, 1999. "Nationale und regionale Spezialisierungsmuster im europäischen Integrationsprozeß," Open Access Publications from Kiel Institute for the World Economy 2294, Kiel Institute for the World Economy (IfW).
  10. Krugman, Paul & Venables, Anthony J, 1994. "Globalization and the Inequality of Nations," CEPR Discussion Papers 1015, C.E.P.R. Discussion Papers.
  11. Alesina, Alberto F & Angeloni, Ignazio & Schuknecht, Ludger, 2002. "What Does the European Union Do?," CEPR Discussion Papers 3115, C.E.P.R. Discussion Papers.
  12. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, December.
  13. Davis, D.R. & Weinstein, D.E., 1997. "Does Economic Geography Matter for International Specialization?," Working Papers 403, Research Seminar in International Economics, University of Michigan.
  14. Krieger-Boden, Christiane & Lammers, Konrad, 1996. "Subventionsabbau in räumlicher Perspektive : Wirkungszusammenhänge und Schlußfolgerungen," Kiel Discussion Papers 280, Kiel Institute for the World Economy (IfW).
  15. Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 575-604, September.
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  18. repec:hhs:iuiwop:430 is not listed on IDEAS
  19. K.H. Midelfart & H.G. Overman & S.J. Redding & A.J. Venables, 2000. "The location of European industry," European Economy - Economic Papers 2008 - 2015 142, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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  23. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
  24. 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.
  25. Dohse, Dirk & Krieger-Boden, Christiane & Soltwedel, Rüdiger, 2000. "Emu Challenges Regional Labor Markets," ERSA conference papers ersa00p7, European Regional Science Association.
  26. Joaquim Oliveira Martins & Stefano Scarpetta & Dirk Pilat, 1996. "Mark-Up Ratios in Manufacturing Industries: Estimates for 14 OECD Countries," OECD Economics Department Working Papers 162, OECD Publishing.
  27. Krieger-Boden, Christiane, 2000. "Globalization, integration and regional specialization," Kiel Working Papers 1009, Kiel Institute for the World Economy (IfW).
  28. Bruce C. Greenwald & Joseph E. Stiglitz, 1986. "Externalities in Economies with Imperfect Information and Incomplete Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 101(2), pages 229-264.
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