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Do we follow the money? The drivers of migration across regions in the EU

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  • Andrés Rodríguez-Pose
  • Tobias Ketterer

Abstract

Most immigration theories tend to highlight that migration follows wealth and economic dynamism, but is this also the case across regions in Europe? The aim of the paper is to investigate whether migrants in Europe indeed follow the money and to contrast this with a variety of potential alternative explanations, including the presence of migrants from a similar origin. The analysis is based on panel data estimations including 133 European regions over a time period of 17 years. Different lag structures have been employed in order to distinguish between short- and long-run effects. The results cast some doubt about the prominence of pecuniary factors as a determinant of cross regional migration in Europe, with little evidence to support the idea that migration follows economic dynamism. Network effects, human capital related-, and 'territorially embedded' innovation enhancing regional characteristics, by contrast, seem to play a much stronger role than hitherto considered. The study also reveals important differences among EU countries in the factors which determine regional migration.

Suggested Citation

  • Andrés Rodríguez-Pose & Tobias Ketterer, 2011. "Do we follow the money? The drivers of migration across regions in the EU," ERSA conference papers ersa11p191, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa11p191
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    2. Olli Lehtonen & Markku Tykkyläinen, 2018. "Path dependence in net migration during the ICT boom and two other growth periods: the case of Finland, 1980-2013," Journal of Evolutionary Economics, Springer, vol. 28(3), pages 547-564, August.
    3. María Gutiérrez-Portilla & Adolfo Maza & María Hierro, 2018. "Foreigners versus natives in Spain: different migration patterns? Any changes in the aftermath of the crisis?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 139-159, July.
    4. Pollermann, Kim, 2016. "Refugees and rural development: Chances from migration and challenges of integration," EconStor Conference Papers 148648, ZBW - Leibniz Information Centre for Economics.

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