Effects of the EU's Eastern Enlargement on Austrian Regions

The effects of the EU enlargement will not be spread evenly across all regions in Austria: this assessment is the outcome of an analysis of sectoral structures and regional location factors. Using a range of approaches to (regional) growth theory, regional development determinants were derived and their effect on economic growth in the Austrian regions estimated. Next to regions which will generally benefit, other regions were identified which will see a clear increase in the competitive pressure exerted on their respective economy. Structural change at regional level will not be redirected by eastern enlargement, but may well be accelerated. Regions dominated in their economic structure by companies strong on human capital will generally benefit, whereas rural border regions are likely to lose, even though dramatic negative consequences can be excluded throughout. Developing structural policy strategies to prepare for eastern enlargement appears to be useful, not just for regions prone to structural disadvantages.