European integration and the case for compensatory regional policy

Christiane Krieger-Boden ()

No 1135, Kiel Working Papers from Kiel Institute for the World Economy

Abstract: The ongoing process of European integration is likely to increase trade and factor mobility thereby increasing interregional competition and affecting the interregional division of labor. From a theoretical standpoint, rising specialization and polarization of European regions may result from this process, and may entail a growing core-periphery-divide of regional income. Such a supposition evokes questions on the need of an accompanying compensatory regional policy and its adequate design. I find that a case for regional policy cannot be denied, but that the EU largely overstates the need for such a policy at EU level, and should abstain from direct structural interventions into regional economies.

Keywords: regional policy; regional specialization; regional polarization; EU structural policy; integration (search for similar items in EconPapers)
JEL-codes: F12 F15 N11 R12 R58 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (4)

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Working Paper: European integration and the case for compensatory regional policy (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:1135

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