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Considers regional policies in the light of intellectual traditions built up in regional science and studies. Preference is given to the methodological approach that develops a quantitative apparatus for regional analysis. Examines 4 dilemmas in regional policy. Hopes for an integrated regional policy doctrine in the future. (GAW)

A synthesis of experiences & reflections on UC regional policies over a period of 30 years, focusing on research, editorial, & managerial activities in Poland & abroad. Hypotheses concerning the cyclical development of regional policies -- the golden age 1950-1975, the crisis 1975-1990, the renaissance, the 1990s -- are discussed. Examination of the common features of regional policies in the western, eastern, & the developing countries indicates that the development of regional policies is a worldwide phenomenon. A methodological approach permitting regional policies to be studied in the interdisciplinary framework of cooperation is outlined. 1 Table, 3 Figures. Modified AA

European policy makers may have asked too much from regional policies: to decrease inequalities between regions, to increase efficiency at the national and European levels and to decrease inequalities between countries. This paper argues that these policies face a trade-off between equity and efficiency at the spatial level. If the existence of positive localised spillovers and of returns to scale explain the phenomenon of self-sustaining agglomeration, then agglomeration must have some positive efficiency effects. We also argue that because infrastructure financed by regional policies have an impact on transaction costs and therefore on the location decision of firms, the long-term effect of certain regional policies may be unexpected and unwelcome. Policies that finance infrastructure to reduce transaction costs on goods between regions lead to more agglomeration but higher growth at the national level. We show that policies that reduce agglomeration (transfers, financing of transport infrastructure inside the poor regions) may then also reduce efficiency and growth. On the contrary, a policy that reduces the cost of innovation or increases the diffusion of innovation reduces regional income inequality, agglomeration and increases growth.

In Britain, as in other countries, we have become acutely aware in recent years of the existence of a 'regional' problem—the problem, that is, of different regions growing at uneven rates; with some regions developing relatively fast and others tending to be left behind. In some ways this problem of fast and slow growing regions has not led to the same kind of inequalities in regional standards of living, in culture or in social structure, in the case of Britain as in some other countries—such as Italy, the United States or France. And in general, the problem of regional inequalities within countries is not nearly so acute as that between the rich and poor countries of the world—with differences in living standards in the ratio of 20:1, or even 50:1, as between the so‐called 'advanced' countries and the 'developing' countries. Yet, as investigations by Kuznets and others have shown, the tremendous differences that now divide the rich and poor nations are comparatively recent in origin. They are the cumulative result of persistent differences in growth rates that went on over periods that may appear long in terms of a life‐span, but which are relatively short in terms of recorded human history—not more than a few centuries, in fact. Two hundred, or two‐hundred‐and‐fifty years ago, the differences in living standards, or in the 'stage' of both economic and cultural development of different countries, or parts of the globe, were very much smaller than they are today.

Our empirical analysis focuses on the effect of regional policies on migration attraction factors in Europe. We employ a regression discontinuity design to assess the causal relationship between the reception of large amounts of public funds and migration flows in the EU-15 regions. In highly-subsidised regions, we find a large increase in the share of foreign citizens from less-developed countries when compared to low-subsidised regions with similar pre-treatment characteristics. The analysis shows that such an increase is due to the positive impact of the European regional policy on job market opportunities as well as the improvement of public goods supply.