A Spatial Perspective on European Integration: Heterogeneous Welfare and Migration Effects from the Single Market and the Brexit

20 Pages Posted: 5 Dec 2018

See all articles by Marcel Henkel

Marcel Henkel

University of Duisburg-Essen - Mercator School of Management

Tobias Seidel

University of Duisburg-Essen

Multiple version iconThere are 2 versions of this paper

Date Written: January 2019

Abstract

We use a quantitative model to study the implications of European integration for welfare and net migration flows across 1,280 European regions. The model suggests that an increase of trade barriers to the level of 1957 reduces welfare by about 5%–8% on average, depending on the presumed trade elasticity. However, remote regions may face initial welfare losses of up to 10%. These heterogeneous welfare effects cause estimated net migration of 1.9% of the population to the European geographic center implying that the dismantling of trade barriers in Europe has led to a more homogeneous spatial distribution of economic activity. With regard to the Brexit, we find moderate welfare losses for the United Kingdom of 1.05% in the most pessimistic scenario while continental Europe's welfare declines by 0.41%.

JEL Classification: F15, R12, R13, R23

Suggested Citation

Henkel, Marcel and Seidel, Tobias, A Spatial Perspective on European Integration: Heterogeneous Welfare and Migration Effects from the Single Market and the Brexit (January 2019). Economic Inquiry, Vol. 57, Issue 1, pp. 333-352, 2019, Available at SSRN: https://ssrn.com/abstract=3295905 or http://dx.doi.org/10.1111/ecin.12732

Marcel Henkel (Contact Author)

University of Duisburg-Essen - Mercator School of Management ( email )

Lotharstra├če 65
Duisburg, Nordrhein-Westfalen 47057
Germany

Tobias Seidel

University of Duisburg-Essen ( email )

Lotharstrasse 1
Duisburg, 47048
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
165
PlumX Metrics