Out of the Dark into the Light? Border Urban Municipalities and Eastern EU Enlargements (job market paper)
In this paper, I use the Eastern EU enlargements as a quasi-experiment to assess the impact of integration on the border areas. As such, I compare the growth of night-time light emissions in urban municipalities close to the treated borders to municipalities located in the interior of the same countries applying staggered differences-in-differences approach. I find a positive average treatment effect for urban municipalities that are part of the 2004 EU enlargement and bordering other countries of the 2004 expansion cohort. Moreover, my results indicate the importance of anticipation, as economic activity increased in the 2004 new member states near borders with EU15 before EU accession. The positive impact on the 2004 enlargement also shows the importance of market access. Smaller urban municipalities of the 2007 enlargement display an enhanced economic development in comparison to the hinterland. Also, it seems that proximity to borders made up of mountains or rivers might restrict the positive impact of EU accession for border areas.
