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CASE Network E-brief 03/2012: Seven lessons from post-communist transition

CASE Network Studies and Analyses No. 434: Background Report on Private Sector Development in Latin America, the Post-Communist Countries of Europe and Asia, the Middle East and North Africa

CASE Network E-brief 02/2012: Azerbaijan's Fiscal Policy after the Oil Boom

CASE Network Studies and Analyses No.433: Euro Zone Crisis and EU Governance: Tackling a Flawed Design and Inadequate Policy Arrangements

CASE Network Studies and Analyses No. 432: Manufactured Exports and FDI in the MED-11 Countries: Recent Evolution, Determinants and Prospects

CASE Network E-briefs 01/2012: Russia's Accession to the WTO: Impacts and Challenges

CASE Network E-briefs 10/2011: The Failed Political Economy of the Euro Crisis

CASE Network Studies and Analyses No. 431: Determinants of Obtaining Formal and Informal LTC across European Countries

CASE Network Studies and Analyses No. 430: Remittances and Children's Capabilities: New Evidence from Kyrgyzstan, 2005-2008

CASE Network e-Briefs 09/2011: The Impact of the Global Financial Crisis on Public Health Expenditures in the Economies of the Former Soviet Union

CASE Network Reports No.105: Information and Communications Technology in the Middle East: Situation as of 2010 and Prospective Scenarios for 2030

CASE Network Reports No. 103: Public Expenditures on Education and Health in Russian Federation before and during the Global Crisis

CASE Network Studies and Analyses No. 429: The International Crisis and Latin America: Growth Effects and Development Strategies

CASE Network Reports No. 100: The Impact of the Global Financial Crisis on Public Expenditures on Education and Health in the Economies of the Former Soviet Union

CASE Network Reports No. 104: Public Expenditures on Education and Health in Ukraine before and during the Global Crisis

CASE Network E-briefs 08/2011: How can Trade Help to Rebuild and Enhance the Economies of the Southern Mediterranean Countries?

CASE Network Reports No. 102: Public Expenditures on Education and Health in Belarus before and during the Global Crisis

CASE Network Reports No. 101: Public Expenditures on Education and Health in Georgia before and during the Global Crisis 

CASE Network Reports No. 99: The Impact of the Global Financial Crisis on Education and Healthcare in the Economies of the Former Soviet Union - the Case of Moldova

CASE Network Studies and Analyses No. 428: Knowledge based firms from Central and East European countries: A comparative overview of case studies

CASE Network Reports No. 98: Tourism in the MED 11 Countries

CASE Network Studies and Analyses No. 427: Entrepreneurship and Economic Growth: An Investigation into the Relationship between Entrepreneurship and Total Factor Productivity Growth in the EU

CASE Network Reports No. 97: Public Expenditures on Education and Health in the Kyrgyz Republic before and during the Global Crisis

CASE Network E-briefs 07/2011: Egypt: Political Transition vs. Economic Challenges?

CASE Network Studies and Analyses No. 426: On the European Union - Turkey Customs Union

CASE Network E-briefs 06/2011: Will IMF Intervention Help Belarus Solve Its Old Problems?

CASE Network Studies and Analyses No. 425: Pensions in Poland and Elsewhere: the View from Paris

CASE Network Reports No. 95: Assessing Development Strategies to Achieve the MDGs in Asia - Macroeconomic Strategies of MDG Achievement in the Kyrgyz Republic

CASE Network Reports No. 96: Shallow versus Deep Integration between Mediterranean Countries and the EU and within the Mediterranean Region

CASE Network E-briefs 05/2011: The Battle Over Private Pensions

CASE Network Studies and Analyses No. 424: Innovation Activities and 
Competitiveness: Empirical Evidence on the Behaviour of Firms in the New EU Member States

CASE Network E-briefs 04/2011: European Debt Crisis: What is the way out

CASE Network Studies and Analyses No. 423: Fiscal policy in the EU in the crisis: a model-based approach

CASE Network Studies and Analyses No. 422: What are service sector innovations and how do we measure them?

CASE Network E-briefs 03/2011: Inflation Rather Than Austerity‐Hungary’s Economic Strategy

CASE Network E-briefs 02/2011: Fiscal Consolidation in the EU's New Member States

CASE Network Studies and Analyses No. 421: Fiscal Policy Options in light of Recent IMF Research 



e-Newsletter



Last update
2012-02-01


CASE Network Studies and Analyses
No. 378   European Integration and Domestic Regions: A Numerical Simulation Analysis
Author: Arne Melchior
Series: CASE Network Studies and Analyses
Year of issue: 2009
Project: ENEPO: EU Eastern Neighbourhood - Economic Potential and Future Development

Abstract

Does European economic integration create more inequality between domestic regions, or is the opposite true? We show that a general answer to this question does not exist, and that the outcome depends on the liberalisation scenario. In order to examine the impact of European and international integration on the regions, the paper develops a numerical simulation model with nine countries and 90 regions. Eastward extension of European integration is beneficial for old as well as new member countries, but within countries the impact varies across regions. Reduction in distance-related trade costs is particularly good for the European peripheries. Each liberalisation scenario has a distinct impact on the spatial income distribution, and there is no general rule telling that integration causes more or less agglomeration.

Keywords: Regional inequality, international trade, European integration.
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