Alina Badulescu, Daniel Badulescu and Catalin‐Adrian Bucur
Euroregions and other forms of cross border cooperation( CBC) do not create a new type of governance across borders, they exercise no political power, and, within the geographical limits and the purpose of their foundation, the structures are based on cooperation arrangements for promoting common interests and improving the living standards of the population in the border area( Council of Europe, 2006). Cooperation between local and regional authorities fosters and enables cooperation between countries, without affecting the territorial integrity of the countries concerned.
2. Literature review on cross‐border cooperation and regional development
Studies on cross‐border cooperation development begin with core‐periphery model, the foundation of the new economic geography. The model was first introduced by Krugman( 1991), and describes the interactions between firm’ s increasing returns to scale, transportation cost and the mobility of labour factor and how can be initiated and provided a spatial structure of economic development.
Forslid and Baldwin( 2000) have integrated Krugman ' s model in the new growth theory, arguing that growth can be a destabilizing force, while social learning( or learning spillovers) induces stabilization effects. They also argued that industry agglomeration leads to accelerating growth in both areas: central( core) and peripheral.
Core‐periphery model applies to Euroregions just because the border areas are usually peripheral regions. Erkut and Ozgen, and then Brodzicki analysed differences between different regions and countries using NUTS II statistics, and concluded there are both significant regional differences concerning the economic and social development, and persistent and even increasing discrepancies between central and peripheral regions after EU enlargement. This result is also consistent with the research arguing that border regions are the most affected in terms of infrastructure and economic development, thus suggesting that cross‐border cooperation is an essential mean to reduce regional underdevelopment of border areas( Uiboupin, 2007).
Similar results were obtained by Economou and Petracos( 2007) analysing data on the development of Southeastern Europe border region. They conclude that the growing differential between metropolitan and border regions requires policy measures to support and accelerate the development of cross‐border cooperation.
Analysing EU enlargement effects on the economic development of EU border regions, Niebuhr indicates that the effects of integration on market access are even stronger than expected( Niebuhr, 2005), and empirical results show that factors as similarity and trust are the most important for the success of cross‐border economic relations( Uiboupin, 2007).
Topaloglou and Petrakos have demonstrated( studying the northern Greece border regions), that the market size of the border and the proximity to a large city are important determinants in boosting cross‐border trade and investment flows in those region( Topaloglou & Petrakos, 2006).
The concept of growth triangle is another theoretical concept searching to model some aspects of crossborder regional integration. Growth triangle is a border area, including territories belonging to three or more countries. The main positive effects of a growth triangle are scale and scope economies, clusters that generate economic growth, technology transfer, foreign direct investments( Uiboupin, 2007).
Katri‐Liis Lepik, based on Etzkowitz research( 1998), proposes to apply the triple helix model( triple helix cooperation) to cross‐border cooperation. The term of cooperation in triple helix is a concept used to describe cooperation between the main three sectors of society: the public sector, the business community and the education system, on regional, national and multinational levels, or, more suggestively, " universitygovernment‐industry relationship "( Katri‐Liis Lepik, 2009).
Applying the theory of triple helix to Euroregions reveals various models of cooperation established between the public and private sector and between these two sectors and economic research, in order to find a common strategy, for a greater involvement of all stakeholders. Research has shown, on the one hand, that the advanced Euroregions can act as platforms for cooperation based on this model, but, on the other hand, not all Euroregions have adopted the principle of triple helix. Usually, the Euroregions settled at the border between an EU and a non‐EU country did not adopt( yet) this model( Topaloglou, et al., 2005).
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