The EU Structural Funds as a Means to hamper Migration
Comparing the economic development and current situation of the internal markets of the U.S. and the EU, two things are noticeable. On the one hand, the EU is conducting massive regional policy programmes (notably the Structural Funds) to foster economic cohesion among the 27 nations belonging to the Single European Market while in the U.S. with its 50 federal states such policies play a rather subordinate role. At the first glance, this seems to be consistent with the situation in this two markets because in the U.S. only 2% of the total population lives in regions with less than 75% of the US-average GDP per capita while in the EU approximately 31% of the total population lives in such regions eligible for structural funds support. In other words, regional policies in the U.S. would be redundant. But taking a closer look, on the other hand, reveals that the internal mobility of U.S. citizens is significantly higher than that of EU citizens. According to the neoclassical economic theory migration, besides the free flow of goods, services and capital, plays an important role in assuring convergence or economic cohesion, respectively. Following this strand of theory no regional policy is needed to achieve convergence among the regions or nations of a common market. Thus, comparing the two internal markets, the question comes up if the lower degree of economic cohesion in the EU has something to do with the lower internal market mobility of EU citizens and a higher degree of structural intervention of the EU regional policy? To answer this question, the paper consists of three parts. First, the theoretical background concerning migration and the potential need for regional policy is presented, to find out if one of them is a better instrument to achieve a balanced economic development within an internal market. In the second part, we discuss the actual situation of internal migration and examine why migration rates are comparatively low in the EU. In the last part, the interrelation between the EU regional policy and (internal) migration are analysed. Besides other things like language, culture or institutions this paper is going to argue that structural funds are inhibiting internal migration, which is one of the key measures in achieving convergence among the nations in the Single European market. It becomes clear, that the European regional policy aiming at economic cohesion among the 27 member states is inconsistent if the structural funds hamper instead of promoting migration. JEL-Classification: E62, F15, F22 Keywords: Migration, Structural Funds, European Integration Other chosen themes: N. Regional strategies and policies E. Finance and regional development
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lammers, Konrad & Stiller, Silvia, 2000. "Regionalpolitische Implikationen der neuen ökonomischen Geographie," HWWA Discussion Papers 85, Hamburg Institute of International Economics (HWWA).
- Schmidt, Peter, 2010.
"Zu Migration und Strukturfonds im Binnenmarkt der EU
[Migration and the Structural Funds in the Single European Market]," MPRA Paper 23740, University Library of Munich, Germany.
- Puga, Diego, 1999.
"The rise and fall of regional inequalities,"
European Economic Review,
Elsevier, vol. 43(2), pages 303-334, February.
- Diego Puga, 1996. "The Rise and Fall of Regional Inequalities," CEP Discussion Papers dp0314, Centre for Economic Performance, LSE.
- Puga, Diego, 1996. "The rise and fall of regional inequalities," LSE Research Online Documents on Economics 20643, London School of Economics and Political Science, LSE Library.
- Puga, Diego, 1997. "The Rise and Fall of Regional Inequalities," CEPR Discussion Papers 1575, C.E.P.R. Discussion Papers.
- Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
- Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
- Bernard G. Funck & Lodovico Pizzati, 2003. "European Integration, Regional Policy, and Growth," World Bank Publications, The World Bank, number 15144, December.
- Martin, Ron, 1999. "The New 'Geographical Turn' in Economics: Some Critical Reflections," Cambridge Journal of Economics, Oxford University Press, vol. 23(1), pages 65-91, January.
- Tobias Hagen & Philipp Mohl, 2011. "Econometric Evaluation of EU Cohesion Policy: A Survey," Chapters,in: International Handbook on the Economics of Integration, Volume III, chapter 16 Edward Elgar Publishing.
- Hagen, Tobias & Mohl, Philipp, 2009. "Econometric evaluation of EU Cohesion Policy: a survey," ZEW Discussion Papers 09-052, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Gianmarco I. P. Ottaviano & Diego Puga, 1998. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," The World Economy, Wiley Blackwell, vol. 21(6), pages 707-731, August.
- Ottaviano, Gianmarco & Puga, Diego, 1997. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," CEPR Discussion Papers 1699, C.E.P.R. Discussion Papers.
- Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
- Puga, Diego, 2001. "European Regional Policies in Light of Recent Location Theories," CEPR Discussion Papers 2767, C.E.P.R. Discussion Papers.
- Kessler, Anke & Lessmann, Christian, 2010. "Interregional Redistribution and Regional Disparities: How Equalization Does (Not) Work," CEPR Discussion Papers 8133, C.E.P.R. Discussion Papers. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa12p383. 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: (Gunther Maier)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.