We are grateful to Stephan Russek, Hans-Werner Sinn, participants at the 8th Göttinger Workshop, a research workshop of the CEPR Research Training Network “Trade, Industrialization and Development”, the research seminar at the University of Paderborn, and the 55th annual meeting of the North American Regional Science Association for helpful comments. Mario Larch is grateful for financial support from the Leibniz-Gemeinschaft (WGL) under project “Pakt 2009 Globalisierungsnetzwerk”.
Structural Operations and Net Migration Across European Union Member Countries
Article first published online: 15 JAN 2014
© 2014 John Wiley & Sons Ltd
Review of International Economics
Volume 22, Issue 2, pages 352–378, May 2014
How to Cite
Egger, P., Eggert, W. and Larch, M. (2014), Structural Operations and Net Migration Across European Union Member Countries. Review of International Economics, 22: 352–378. doi: 10.1111/roie.12112
- Issue published online: 1 APR 2014
- Article first published online: 15 JAN 2014
- Leibniz-Gemeinschaft (WGL)
This paper analyzes the effects of international transfers to finance infrastructure on net migration flows among countries within the EU. A new economic geography model is employed with common pool financed infrastructure investments to derive a set of empirically testable hypotheses about the effects of transfer payments to finance infrastructure investments on migration. A significant effect of structural fund expenditures is identified on the bilateral net migration of workers among the EU member countries. On average, a one percentage point increase in the expenditures on structural funds (in per cent of gross domestic product (GDP)) leads to a reduction in the measure of bilateral net migration by about 0.4–0.8%.