IDEAS home Printed from https://ideas.repec.org/a/nbp/nbpbik/v53y2022i6p605-624.html
   My bibliography  Save this article

Recommendations for changes in the methodology of public EU funds allocation in the context of economic crises, including the COVID-19 pandemic

Author

Listed:
  • Karina Bedrunka

    (Marshal Office of the Opolskie Voivodeship)

  • Ireneusz Dąbrowski

    (Warsaw School of Economics)

Abstract

The article presents the national allocations of EU funds under the Next Generation fund and two selected financial instruments: RRF and REACT EU, which were then interpreted due to the COVID-19 pandemic. Studies have shown that Spain, Italy and France have received more than 50% and, in the case of the REACT EU programme, 64% of the European public intervention value under the RRF instrument to combat the effects of COVID-19. It should be noted that in the current algorithm for the distribution of EU funds, the values of the identified amounts of support in selected financial instruments depend on population, GDP and unemployment. In the second part of the research, which focused on satisfaction indicators, it was shown that citizens of European Union countries value having a job more than high earnings, and this means that they value life stability more than the amount of remuneration. It has also been shown that for EU citizens, social ties are rated higher than spending free time. Taking into account the results of the research, the authors believe that when developing future methodologies for the allocation of European funds, the amount of support from European public funds should be additionally relativized to the indicator of life and time satisfaction, as well as the types and intensity of global asymmetric jumps. The pandemic or the unjustified aggression of the Russian Federation against Ukraine and the related energy crises clearly demonstrate that public funds should not be allocated from the point of view of only indicators determining the socio-economic situation of the country. Based on the research, the authors believe that quality of life indicators (finance, employment, social contacts and leisure activities) should be included as a new insight in the criteria for the distribution of EU funds.

Suggested Citation

  • Karina Bedrunka & Ireneusz Dąbrowski, 2022. "Recommendations for changes in the methodology of public EU funds allocation in the context of economic crises, including the COVID-19 pandemic," Bank i Kredyt, Narodowy Bank Polski, vol. 53(6), pages 605-624.
    • Handle: RePEc:nbp:nbpbik:v:53:y:2022:i:6:p:605-624
    as

    Download full text from publisher

    File URL: https://bankikredyt.nbp.pl/content/2022/06/bik_06_2022_03.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Karina Bedrunka & Łukasz Mach & Anna Kuczuk & Anna Bohdan, 2021. "Identification and Analysis of Structural Fund Support Mitigating the Effects of the COVID-19 Pandemic in the EU—A Case Study of Health Unit Funding," Energies, MDPI, vol. 14(16), pages 1-15, August.
    2. Christiane Baumeister & Lutz Kilian, 2016. "Forty Years of Oil Price Fluctuations: Why the Price of Oil May Still Surprise Us," Journal of Economic Perspectives, American Economic Association, vol. 30(1), pages 139-160, Winter.
    3. Stijn Claessens & M. Ayhan Kose, 2013. "Financial Crises: Explanations, Types and Implications," CAMA Working Papers 2013-06, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    4. Riikka Kangas & Timo Aarrevaara, 2020. "Higher Education Institutions as Knowledge Brokers in Smart Specialisation," Sustainability, MDPI, vol. 12(7), pages 1-15, April.
    5. Łukasz Mach & Karina Bedrunka & Ireneusz Dąbrowski & Paweł Frącz, 2021. "The Relationship between ROP Funds and Sustainable Development—A Case Study for Poland," Energies, MDPI, vol. 14(9), pages 1-19, May.
    6. Cristina Ponsiglione & Ivana Quinto & Giuseppe Zollo, 2018. "Regional Innovation Systems as Complex Adaptive Systems: The Case of Lagging European Regions," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    7. Hamish van der Ven & Yixian Sun, 2021. "Varieties of Crises: Comparing the Politics of COVID-19 and Climate Change," Global Environmental Politics, MIT Press, vol. 21(1), pages 13-22, Winter.
    8. André Sapir, 2020. "Why has COVID-19 hit different European Union economies so differently?," Policy Contributions 38303, Bruegel.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Łukasz Mach & Karina Bedrunka & Anna Kuczuk & Marzena Szewczuk-Stępień, 2021. "Effect of Structural Funds on Housing Market Sustainability Development—Correlation, Regression and Wavelet Coherence Analysis," Risks, MDPI, vol. 9(10), pages 1-17, October.
    2. Karina Bedrunka & Łukasz Mach & Anna Kuczuk & Anna Bohdan, 2021. "Identification and Analysis of Structural Fund Support Mitigating the Effects of the COVID-19 Pandemic in the EU—A Case Study of Health Unit Funding," Energies, MDPI, vol. 14(16), pages 1-15, August.
    3. Łukasz Mach & Karina Bedrunka & Ireneusz Dąbrowski & Paweł Frącz, 2021. "The Relationship between ROP Funds and Sustainable Development—A Case Study for Poland," Energies, MDPI, vol. 14(9), pages 1-19, May.
    4. Joao Ayres & Constantino Hevia & Juan Pablo Nicolini, 2021. "Real Exchange Rates and Primary Commodity Prices: Mussa Meets Backus-Smith," Working Papers 89, Red Nacional de Investigadores en Economía (RedNIE).
    5. Jen-Yu Lee & Tien-Thinh Nguyen & Hong-Giang Nguyen & Jen-Yao Lee, 2022. "Towards Predictive Crude Oil Purchase: A Case Study in the USA and Europe," Energies, MDPI, vol. 15(11), pages 1-15, May.
    6. Pham T. T. Trinh & Bui T. T. My, 2023. "The impact of world oil price shocks on macroeconomic variables in Vietnam: the transmission through domestic oil price," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 37(1), pages 67-87, May.
    7. Uhlig Harald, 2014. "Sovereign Default Risk and Banks in a Monetary Union," German Economic Review, De Gruyter, vol. 15(1), pages 23-41, February.
    8. Costola, Michele & Lorusso, Marco, 2022. "Spillovers among energy commodities and the Russian stock market," Journal of Commodity Markets, Elsevier, vol. 28(C).
    9. Wang, Yudong & Hao, Xianfeng, 2022. "Forecasting the real prices of crude oil: A robust weighted least squares approach," Energy Economics, Elsevier, vol. 116(C).
    10. Beckmann, Joscha & Czudaj, Robert L. & Arora, Vipin, 2020. "The relationship between oil prices and exchange rates: Revisiting theory and evidence," Energy Economics, Elsevier, vol. 88(C).
    11. German Forero-Laverde, 2016. "Are All Booms and Busts Created Equal? A New Methodology for Understanding Bull and Bear Stock Markets," UB School of Economics Working Papers 2016/339, University of Barcelona School of Economics.
    12. An, Zidong & Binder, Carola & Sheng, Xuguang Simon, 2023. "Gas price expectations of Chinese households," Energy Economics, Elsevier, vol. 120(C).
    13. Gupta, Rangan & Wohar, Mark, 2017. "Forecasting oil and stock returns with a Qual VAR using over 150years off data," Energy Economics, Elsevier, vol. 62(C), pages 181-186.
    14. Chung‐Hua Shen & Hsing‐Hua Hsu, 2022. "The determinants of Asian banking crises—Application of the panel threshold logit model," International Review of Finance, International Review of Finance Ltd., vol. 22(1), pages 248-277, March.
    15. Gaies, Brahim & Goutte, Stéphane & Guesmi, Khaled, 2019. "Banking crises in developing countries–What crucial role of exchange rate stability and external liabilities?," Finance Research Letters, Elsevier, vol. 31(C).
    16. Adrian, Tobias & Borowiecki, Karol Jan & Tepper, Alexander, 2022. "A leverage-based measure of financial stability," Journal of Financial Intermediation, Elsevier, vol. 51(C).
    17. Daniel Levy & Tamir Mayer & Alon Raviv, 2020. "Academic Scholarship in Light of the 2008 Financial Crisis: Textual Analysis of NBER Working Papers," Working Papers hal-02488796, HAL.
    18. Yang, Tianle & Zhou, Fangxing & Du, Min & Du, Qunyang & Zhou, Shirong, 2023. "Fluctuation in the global oil market, stock market volatility, and economic policy uncertainty: A study of the US and China," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 377-387.
    19. Emmanuel Apergis & Nicholas Apergis, 2021. "The impact of COVID-19 on economic growth: evidence from a Bayesian Panel Vector Autoregressive (BPVAR) model," Applied Economics, Taylor & Francis Journals, vol. 53(58), pages 6739-6751, December.
    20. Ponta, Linda & Puliga, Gloria & Lazzarotti, Valentina & Manzini, Raffaella & Cincotti, Silvano, 2023. "To copatent or not to copatent: An agent-based model for firms facing this dilemma," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1349-1363.

    More about this item

    Keywords

    EU funds; economic crises; pandemic; methodology; satisfaction indicators;
    All these keywords.

    JEL classification:

    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbp:nbpbik:v:53:y:2022:i:6:p:605-624. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wojciech Burjanek (email available below). General contact details of provider: https://edirc.repec.org/data/nbpgvpl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.