Regional integration or fragmentation? The German-Polish border region in a new Europe

This paper deals with the problems of regional economic integration in the German-Polish border area, focusing on the nature and intensity of cross-bo rder inter-firm linkages. It firstly emphasizes the differentiation of regi onal development paths in East Central Europe, contrasting a 'high road' an d a 'low road' to development. Then the problems of cross-border regional i ntegration are discussed with regard to exogenous and endogenous influences . Exogenous influences on the development of the border region include the investment strategies of western firms in former East Germany and Poland. E ndogenous influences include communication barriers and a 'low trust enviro nment' which is rooted in the particular development history of this region . These factors help to explain why only weak and qualitatively 'low level' approaches to economic co-operation between regional firms on both sides o f the border have emerged.