Regional Economic Development and Social Equity under Population and Capital Flows: An International Case Study of the US and EU

Abstract

With globalization and regional integration deepening, rising flows of people and capital across regions have become important elements restructuring global economic formations and regional social equity. This study investigates the impact of people and capital flows on regional economic growth and social equity. Using a comparative case study approach, this study assesses policy instruments and institutional responses of the United States and the European Union in response to uneven migration and investment patterns. Findings suggest that regions with high levels of human migration and capital inflow experience economic growth and enhanced innovation, but face increasing burdens on social resources. In contrast, regions with population loss and out-migration of capital face declining economies, aging populations, and increasing social inequity. Although both the U.S. and the EU have introduced regional development policies, their success has been uneven. The study underscores the importance of combining market-driven mechanisms with effective national policies to achieve balanced and sustainable regional development. Limitations include reliance on secondary data and insufficient focus on grassroots-level social dynamics. Future research should incorporate mixed methods and investigate the influence of digital finance and green technologies on capital flows and regional equity.