Bericht

East-west integration and the economic geography of Europe

Implementation of the European internal market and East-West integration has been accompanied by a dramatic change in the spatial distribution of economic activity, with higher growth west and east of a longitude degree through Germany and Italy. In the east, income growth has been accompanied by increasing regional disparities within countries. We examine theoretically and empirically whether European integration as such can explain these developments. Using a numerical simulation model with 9 countries and 90 regions, theoretical predictions are derived about how various patterns of integration may affect the income distribution. Comparing with reality, we find that a reduction in distance-related trade costs combined with east-west integration is best able to explain the actual changes in Europe's economic geography. This suggests that the implementation of the European internal market or the Euro has made Europe smaller”. In Central Europe, capital regions grow faster and there are few east-west growth differences inside countries. There is no convincing support for the hypothesis that European integration had adverse effects on nonmembers.

Sprache
Englisch

Erschienen in
Series: CASE Network Studies & Analyses ; No. 379

Klassifikation
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Economic Integration
Size and Spatial Distributions of Regional Economic Activity
Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
Thema
Income distribution
regional inequality
economic growth and convergence
European integration
Europäische Integration
Regionale Einkommensverteilung
Räumliche Verteilung
Wirtschaftliche Konvergenz
Europa

Ereignis
Geistige Schöpfung
(wer)
Melchior, Arne
Ereignis
Veröffentlichung
(wer)
Center for Social and Economic Research (CASE)
(wo)
Warsaw
(wann)
2009

Handle
Letzte Aktualisierung
12.07.2024, 13:22 MESZ

Objekttyp

  • Bericht

Beteiligte

  • Melchior, Arne
  • Center for Social and Economic Research (CASE)

Entstanden

  • 2009

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