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The Impact of EU Regional Support on Growth and Employment

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  • Sandy Dall’erba

    () (Dept. of Geography and Regional Development, University of Arizona)

  • Julie Le Gallo

    () (CRESE, Université de Franche-Comté)

Abstract

In this paper the authors assess the impact of structural funds on the per capita GDP and employment convergence process of 145 European regions over 1989–1999. This paper goes beyond the recent contributions on European regional policies and convergence since each of the five objectives of regional support is studied and spatial effects are included in the analysis. For this purpose the authors use spatial econometrics to include the relevant spatial effects in the estimation of the appropriate conditional ß-convergence model. The impact of the funds and their spatial lag indicate few significant results, and when they are, their extent is very small or even negative. This raises some doubts on the efficiency of regional support and call for a deep reform for the next programming period.

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Bibliographic Info

Article provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.

Volume (Year): 57 (2007)
Issue (Month): 7-8 (September)
Pages: 324-340
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Handle: RePEc:fau:fauart:v:57:y:2007:i:7-8:p:324-340

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Related research

Keywords: European structural funds; ß-convergence; growth; employment; spatial econometrics; geographic spillovers;

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References

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  1. Aadne Cappelen & Fulvio Castellacci & Jan Fagerberg & Bart Verspagen, 2003. "The Impact of EU Regional Support on Growth and Convergence in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 41, pages 621-644, 09.
  2. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
  3. Martin, Philippe, 2000. "Role of Public Policy in the Process of Regional Convergence," Open Access publications from Sciences Po info:hdl:2441/9328, Sciences Po.
  4. Steven N. Durlauf & Danny T. Quah, 1998. "The New Empirics of Economic Growth," NBER Working Papers 6422, National Bureau of Economic Research, Inc.
  5. Puga, Diego, 2001. "European Regional Policies in Light of Recent Location Theories," CEPR Discussion Papers 2767, C.E.P.R. Discussion Papers.
  6. Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR & CES & MSH, vol. 17(35), pages 321-359, October.
  7. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
  8. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S103-26, October.
  9. Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR & CES & MSH, vol. 16(32), pages 205-253, 04.
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Citations

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Cited by:
  1. Tausch, Arno, 2008. "308 Billion Euros into the Sand? The Debacle of the EU's Regional Policy [308 Milliarden Euro in den Sand? Zum Debakel der EU-Regionalpolitik]," MPRA Paper 10609, University Library of Munich, Germany.
  2. Wolfgang Polasek & Richard Sellner, 2011. "Does Globalization affect Regional Growth? Evidence for NUTS-2 Regions in EU-27," Working Paper Series 24_11, Rimini Centre for Economic Analysis.
  3. Ondrej Schneider, 2007. "The EU Budget Dispute – A Blessing in Disguise?," CESifo Working Paper Series 1986, CESifo Group Munich.
  4. Andrés Rodríguez-Pose & Katja Novak, 2011. "Learning processes and economic returns in European Cohesion policy," Working Papers 2011-17, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  5. Elisa Montresor & Francesco Pecci & Nicola Pontarollo, 2010. "The evaluation of european structural funds on economic convergence with the application of spatial filtering technique," Working Papers 07/2010, Università di Verona, Dipartimento di Scienze economiche.
  6. Tausch, Arno, 2009. "Ist die Globalisierung fit für das soziale Europa?
    [Is Globalization fit for Social Europe?]    ," MPRA Paper 14264, University Library of Munich, Germany.
  7. Philipp Mohl & Tobias Hagen, 2011. "Do EU structural funds promote regional employment? Evidence from dynamic panel data models," Working Paper Series 1403, European Central Bank.
  8. Sandy Dall'erba & Eveline Van Leeuwen, 2006. "Does Agricultural Employment Benefit From Eu Support?," ERSA conference papers ersa06p96, European Regional Science Association.
  9. Sandy DALL’ERBA & Rachel GUILLAIN & Julie LE GALLO, 2009. "Impact Of Structural Funds On Regional Growth: How To Reconsider A 9 Year-Old Black Box," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 30, pages 77-100.
  10. repec:ags:stagec:119653 is not listed on IDEAS

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