Tracing the determinants of economic cross-border interaction in the European Union

The abolition of the artificial impediments of cross-border interaction inside the European Union, has released dynamics that have influenced significantly the economic space at the frontiers. In contrast, at the European Union external borders, the constraints concerning cross-border interaction with third countries have become more tangible in the sphere of reality. Under this framework, a new mix of opportunities and the threats seems to come forth together with a new political, social and economic map that redefines the notion of vicinity. In the present article, the study of the 'border effect' in Europe is attempted through the investigation of the basic determinants of the spatial dynamics of cross-border interaction. The findings of the article contribute to the better understanding of the 'border effect' with significant implications for both theory and policy.