Konferenzbeitrag

Market Potential and Border Effects in Europe

We estimate a linear approximation of the market potential function for Europe as derived in geography and trade models. Using a spatial econometric estimation approach, border effects are identified by a differential impact of nearby regions' purchasing power, depending on whether two regions are located within the EU15 or outside the EU15. Our results reveal substantial market potential effects on nominal wage rates. We also find significant border effects between EU15 and non-EU15 countries. Our estimation results suggest that the enlargement of the EU in May 2004 may lead to pronounced wage effects in the new member states, but to relatively small ones for the existing members and that regional disparities within new member states will increase.

Language
Englisch

Bibliographic citation
Series: 46th Congress of the European Regional Science Association: "Enlargement, Southern Europe and the Mediterranean", August 30th - September 3rd, 2006, Volos, Greece

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Huber, Peter
Paffermayr, Michael
Wolfmayr, Yvonne
Event
Veröffentlichung
(who)
European Regional Science Association (ERSA)
(where)
Louvain-la-Neuve
(when)
2006

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Konferenzbeitrag

Associated

  • Huber, Peter
  • Paffermayr, Michael
  • Wolfmayr, Yvonne
  • European Regional Science Association (ERSA)

Time of origin

  • 2006

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