Border cities or regions are in theory more affected by the EU integration process than more central locations as it more drastically influences their transaction costs and market potential. We find a positive empirical effect of EU enlargement as measured by the growth in population share along the integration borders. This effect is active for a limited distance (70 km) and time period (30 years), and is more important for large cities and regions. Despite this positive EU enlargement effect along the border, a location close to a border remains a burden in view of the (larger) negative general border effect.

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractAfter World War II (WWII), town twinning became popular, notably in Germany. This was mainly a reaction to the war experience, and it was aimed at creating renewed international understanding and co-operation between German cities and cities in other countries. The contacts created by town twinning also resulted in increased international access for the cities involved. This potentially stimulates growth in these cities compared to cities that do not have (as many) twinning partners. In this DICE report article we summarize the findings of Brakman, Garretsen and Oumer (2015) on the effects of town twinning on population growth in German counties and municipalities. Our results show that German counties and municipalities that engage in town twinning often experienced significantly higher population growth than German cities that did not have twinning partners. The number or intensity of twinning relations in particular, as well as town twinning with French cities, and with neighboring countries more generally, turn out to have a positive effect on city growth. We also find that the positive population growth effects of town twinning are confined to the larger German cities.

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Distance related variables typically vary in a cross-section dimension but less so in a time dimension across cities, regions, or countries. The enlargement of the EU or the introduction of the euro, however, can be looked upon as integration shocks that are informative of the consequences of changes in distance over time. Border cities or regions are thought to be more affected by these shocks than more central locations because of the larger impact of changes in the transaction costs that go along with EU integration along the border. Both at the urban and regional level, we find a beneficial influence of the EU integration process as measured by the growth in population share along the integration borders, leading to an extra growth rate of about 0.15 percentage points per annum. The positive integration holds on both sides of the integration border, is active for a limited distance (up to 70km) and time period (up to 30 years), and is particularly important for large cities and regions. Despite the positive EU integration effect, being located along a border remains a burden in view of the (larger) negative general border effect. We do not find similar positive border-integration effects as a result of the introduction of the euro.

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