Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/46343 
Year of Publication: 
2011
Series/Report no.: 
CESifo Working Paper No. 3335
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Distance related variables typically vary in a cross-section dimension but less so in a time dimension across cities, regions, or countries. The enlargement of the EU or the introduction of the euro, however, can be looked upon as integration shocks that are informative of the consequences of changes in distance over time. Border cities or regions are thought to be more affected by these shocks than more central locations because of the larger impact of changes in the transaction costs that go along with EU integration along the border. Both at the urban and regional level, we find a beneficial influence of the EU integration process as measured by the growth in population share along the integration borders, leading to an extra growth rate of about 0.15 percentage points per annum. The positive integration holds on both sides of the integration border, is active for a limited distance (up to 70km) and time period (up to 30 years), and is particularly important for large cities and regions. Despite the positive EU integration effect, being located along a border remains a burden in view of the (larger) negative general border effect. We do not find similar positive border-integration effects as a result of the introduction of the euro.
JEL: 
F15
R12
R23
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size
210.83 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.