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The main goal of the project is to find how economic development is influenced by regional cooperation and changes in the spatial structure of economic activity, taking into account the extended possibilities of goods, capital and labour mobility associated with the current and possible future enlargements of the European Union. In the modelling process we want to estimate how the diminishing importance of country borders within Europe and the formation of cross-border economic areas influence the economic development (economic growth, the structure of the economy, innovations, price level, etc.) of Estonia and its regions and the behaviour and well-being (incomes, economic inequality, unemployment, migration) of individuals. The results will be used for elaborating forecasts of economic development and policy proposals. Accomplishing the research project will rely on the theories of economic growth and regional economic development (incl. endogenous growth theories and new economic geography) and on the application of econometric methods and models (e.g. spatial econometrics, panel data methods, macroeconometric and general equilibrium models). The main data sources are the databases of Eurostat and the Statistical Office of Estonia. In carrying out the research project both experienced researchers and Ph.D. and master students will be involved, with the priority on the development of young researchers. The scientific importance of the project is the development of theories of regional economic development and the quantitative methods used for analysing the problems. On the basis of the results of the research project like the factors of regional economic development and forecasts of regional development will be possible to make policy proposals. |