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

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References

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  1. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
  2. S Durlauf & Danny Quah, 1998. "The New Empirics of Economic Growth," CEP Discussion Papers dp0384, Centre for Economic Performance, LSE.
  3. 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.
  4. Martin, Philippe & Rogers, Carol Ann, 1994. "Industrial Location and Public Infrastructure," CEPR Discussion Papers 909, C.E.P.R. Discussion Papers.
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  6. David Aschauer, 1988. "Is public expenditure productive?," Staff Memoranda 88-7, Federal Reserve Bank of Chicago.
  7. 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.
  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. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-84, Oct.-Dec..
  10. Roger Vickerman & Klaus Spiekermann & Michael Wegener, 1999. "Accessibility and Economic Development in Europe," Regional Studies, Taylor & Francis Journals, vol. 33(1), pages 1-15.
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Citations

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Cited by:
  1. Rodríguez-Pose, Andrés & Novak, Katja, 2013. "Learning processes and economic returns in European Cohesion policy," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 25, pages 1-20.
  2. Wolfgang Polasek & Richard Sellner, 2011. "Does Globalization affect Regional Growth? Evidence for NUTS-2 Regions in EU-27," Working Paper Series 24_11, The Rimini Centre for Economic Analysis.
  3. Mohl, Philipp & Hagen, Tobias, 2011. "Do EU structural funds promote regional employment? Evidence from dynamic panel data models," Working Paper Series 1403, European Central Bank.
  4. Sandy Dall'erba & Eveline Van Leeuwen, 2006. "Does Agricultural Employment Benefit From Eu Support?," ERSA conference papers ersa06p96, European Regional Science Association.
  5. Ondrej Schneider, 2006. "The EU Budget Dispute - A Blessing in Disguise?," Research and Policy Notes 2006/01, Czech National Bank, Research Department.
  6. 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.
  7. Vinko Mu?tra & Lena Male?eviæ Peroviæ & Silvia Golem, 2013. "Social attitudes and regional inequalities," ERSA conference papers ersa13p678, European Regional Science Association.
  8. Nicola Pontarollo, 2013. "Structural change, productivity growth and Structural Funds in European regions," ERSA conference papers ersa13p747, 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. 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, University of Verona, Department of Economics.
  11. 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.
  12. Mohl, P. & Hagen, T., 2010. "Do EU structural funds promote regional growth? New evidence from various panel data approaches," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 353-365, September.
  13. Montresor, Elisa & Pecci, Francesco & Pontarollo, Nicola, 2011. "The convergence process of the European regions: the role of Regional Policy and the Common Agricultural Policy," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 113(2), October.
  14. Juliana Dahl, 2013. "Innovation and Growth in Regions with Specific Geographical Features," Kiel Advanced Studies Working Papers 463, Kiel Institute for the World Economy.

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