Kiel Working Papers, Kiel Institute for World Economics
No 1135:
European Integration and the Case for Compensatory Regional Policy
Christiane Krieger-Boden
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: Integration, regional policy, regional specialization, regional polarization, EU structural policy; (follow links to similar papers)
JEL-Codes: F12; F15; N11; R12; R58; (follow links to similar papers)
38 pages, November 2002
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