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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

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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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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1435-5957.2008.00184.x
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Publisher Info
Article provided by Blackwell Publishing 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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February. [Downloadable!] (restricted)
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  1. Sassi, Maria, 2007. "Structural Change And Economic Convergence Across The Eu-15 Regions: Can The Agricultural Sector Play a Role?," 81st Annual Conference, April 2-4, 2007, Reading University 7961, Agricultural Economics Society. [Downloadable!]
  2. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute. [Downloadable!]
  3. Sarantis Lolos, 2009. "The effect of EU structural funds on regional growth: assessing the evidence from Greece, 1990–2005," Economic Change and Restructuring, Springer, vol. 42(3), pages 211-228, August. [Downloadable!] (restricted)
  4. Shankar, Raja & Shah, Anwar, 2009. "Lessons from European Union policies for regional development," Policy Research Working Paper Series 4977, The World Bank. [Downloadable!]
  5. Mohl, Philipp & Hagen, Tobias, 2008. "Does EU Cohesion Policy Promote Growth? Evidence from Regional Data and Alternative Econometric Approaches," ZEW Discussion Papers 08-086, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. GUILLAIN, Rachel & DALL'ERBA, Sandy & LE GALLO, Julie, 2007. "Politiques de développement et croissance régionale en Europe : le rôle des rendements croissants et des dépendances spatiales," LEG - Document de travail - Economie 2007-02, LEG, Laboratoire d'Economie et de Gestion, CNRS UMR 5118, Université de Bourgogne. [Downloadable!]
  7. Sascha O. Becker & Peter Egger & Maximilian Von Ehrlich & Robert Fenge, 2008. "Going NUTS: The Effect of EU Structural Funds on Regional Performance," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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