Migration and Regional Convergence in the European Union
WIFO Working Papers, No. 419
35 Pages Posted: 4 Jun 2012
Date Written: January 11, 2012
Abstract
We offer an empirical, econometric analysis of the impact of migration on the EU 27's NUTS-2 regions in the period 2000-2007. While our results indicate that migration had no statistical impact on regional unemployment in the EU it had a significant impact on both per-capita GDP and productivity. The coefficients suggest that a 1 percent increase in immigration to immigration regions increased per-capita GDP by about 0.02 percent and productivity by about 0.03 percent. For emigration regions a 1 percent increase in the emigration rate leads to a reduction of 0.03 percent in per-capita GDP and 0.02 percent in productivity. Since immigration regions are also often regions with above-average GDP and productivity while emigration regions in Europe practically all have below-average GDP, migration seems to induce divergence rather than convergence.
Keywords: Migration, Convergence, Unemployment
JEL Classification: O15, O18, R23, R11
Suggested Citation: Suggested Citation
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