Structural Operations and Net Migration Across European Union Member Countries |
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| Authors: | Peter Egger Wolfgang Eggert Mario Larch |
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| Institution: | 1. University, and ETH Zürich, , 8092 Zürich, Switzerland;2. CEPR, CESifo, ifo Institute, GEP, CBT, , Oxford;3. Albert‐Ludwigs‐University Freiburg, , 79098 Freiburg, Germany;4. CESifo;5. +49‐921‐556240;6. Chair of Empirical Economics, Faculty of Law and Economics, University of Bayreuth, , 95440 Bayreuth, Germany;7. Ifo Institute, CESifo and GEP, University of Nottingham |
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| Abstract: | 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%. |
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