From Diversity to Economic Development: The Role of Institutions and Policies in European Regions

Authors: Ozge Yenigun*, University of Illinois at Urbana-Champaign (Dept of Urban & Reg Pl)
Topics: Economic Geography, Migration, Europe
Keywords: Immigration, diversity, economic development, Europe, integration
Session Type: Paper
Day: 4/6/2019
Start / End Time: 9:55 AM / 11:35 AM
Room: Hampton Room, Omni, East
Presentation File: No File Uploaded

Immigration and population diversity have far-reaching consequences for regional economies. Scholars of regional development increasingly pay attention to the effects of diversity on economic growth, measuring impacts on labor market outcomes, productivity, innovation and entrepreneurial activity (Ottaviano & Peri, 2006; Ozgen et al., 2012; Alesina et al., 2013). However, research on the mechanisms linking diversification to economic development remains limited (Niebuhr, 2017).
This paper examines the role of institutions and integration measures in translating diversification into innovation and regional growth in European countries. Drawing on regional-level (NUTS II) demographic and economic data, I test the impact of policies and programs directed at immigrant inclusion on regional economic outcomes. I focus on the Asylum, Migration and Integration Fund (AMIF), a key policy of the European Union (EU) that funds immigration and integration projects in member states. Using indicators such as AMIF payments made to member states, the implementation of AMIF National Programs and types of AMIF-funded projects, I examine the role of AMIF programs in mediating diversity impacts on economic development in European regions,
The results will contribute to understanding how diversity and migration policies shape regional economic development and the discussions of possible mechanisms through which places can benefit from diversity. This discussion is crucial as global migration shapes European economies and poses major policy challenges for European countries, and integration of newcomers has been Europe’s big test over the past three years.

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