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Regional convergence and the impact of European structural funds over 1989-1999: A spatial econometric analysis

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  • Sandy Dall'erba
  • Julie Le Gallo

Abstract

This paper evaluates the impact of structural funds on the convergence process between 145 European regions over 1989-1999. The presence of spillover effects is investigated with spatial econometric methods, which assess the impact of the funds on the targeted region and its neighbours. We also control the potential endogeneity problem in the estimation of their impact. Our estimation results indicate that significant convergence takes place, but that the funds have no impact on it. Simulation experiments show how investments targeted to the peripheral regions never spill over to their neighbours, which calls for a reconsideration of current regional policy tools. Copyright (c) 2008 the author(s). Journal compilation (c) 2008 RSAI.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Papers in Regional Science.

Volume (Year): 87 (2008)
Issue (Month): 2 (06)
Pages: 219-244

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Handle: RePEc:bla:presci:v:87:y:2008:i:2:p:219-244

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190

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  1. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 26(1), pages 77-104, February.
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