open access publication

Article, 2024

The complex regional effects of macro-institutional change: evidence from EU enlargement over three decades

Review of World Economics, ISSN 0043-2636, 1610-2878, 1610-2886, Pages 1-33, 10.1007/s10290-024-00528-6

Contributors

Mitze, Timo 0000-0003-3799-5200 (Corresponding author) [1] [2] Breidenbach, Philipp 0000-0002-1506-7350 [2]

Affiliations

  1. [1] University of Southern Denmark
    2. [NORA names: SDU University of Southern Denmark; University; Denmark; Europe, EU; Nordic; OECD];
  2. [2] RWI – Leibniz Institute for Economic Research
    3. [NORA names: Germany; Europe, EU; OECD]

Abstract

The EU enlargement process has thrust EU internal border regions into the spotlight of the European single market. This study explores how this specific macro-institutional change has impacted their socio-economic development. Tracking outcomes across four EU enlargement waves from 1986 to 2007, we identify integration effects across EU NUTS3 regions. Pooled over all waves and border regions, positive integration effects emerge for per capita GDP, labor productivity, patents per capita, and night light emissions in border regions compared to non-border areas. These effects diminish with increasing spatial distance from the enlargement border. At a detailed level, structural heterogeneities become evident across enlargement waves and region types. Internal border regions in established EU member countries benefit relatively in terms of GDP per capita and labor productivity but experience relative declines in employment rates and population. In contrast, border regions in new member countries, particularly during the 2004 and 2007 eastern enlargements, gain from deepening economic integration in terms of population and employment growth. Sector-specific estimations indicate post-enlargement specialization of economic activities in border regions in line with standard trade theories.

Keywords

EU enlargement, EU enlargement process, EU enlargement waves, EU member countries, Eastern enlargement, European single market, GDP, GDP per capita, NUTS3 regions, Single Market, activity, area, border, border region, capita, changes, countries, decades, decline, deepening economic integration, development, distance, economic activity, economic integration, effect, emission, employment, employment growth, employment rate, enlargement, enlargement process, enlargement waves, estimation, evidence, experiments, growth, heterogeneity, increasing spatial distance, integrated effects, integration, international border region, labor, labor productivity, levels, light emission, macro-institutional changes, market, member countries, members, night, night light emissions, non-border areas, outcomes, patent, patents per capita, per capita GDP, population, positive integrative effect, process, production, rate, region, region types, regional effects, related decline, sector-specific estimates, socio-economic development, spatial distance, specialization of economic activity, structural heterogeneity, study, theory, thrust, tracking outcomes, trade, trade theory, type, wave

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