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Does European Cohesion Policy affect Regional Business Dynamics?

Author

Listed:
  • Díaz Ramírez, Marcos Aurelio

    (Organisation for Economic Co-operation and Development)

  • Kleine-Rueschkamp, Lukas

    (Organisation for Economic Co-operation and Development)

  • Veneri, Paolo

    (Gran Sasso Science Institute)

Abstract

This paper assesses whether European Cohesion Policy funds from the 2007 2013 programming period affected business dynamics in European regions. Using a regression discontinuity approach, the analysis shows that regions receiving more funds experienced higher firm births, without statistically significant firm deaths, resulting in positive net firm creation and growing firm-related employment. In addition, this study confirms previous findings in the literature according to which regions receiving more funds show higher increases in gross value added per worker. Finally, funds have a significantly higher effect on net business employment creation in regions with lower levels of perceived corruption, although this is not necessarily conductive to higher levels of labour productivity in those regions.

Suggested Citation

  • Díaz Ramírez, Marcos Aurelio & Kleine-Rueschkamp, Lukas & Veneri, Paolo, 2023. "Does European Cohesion Policy affect Regional Business Dynamics?," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 57, pages 5-31.
    • Handle: RePEc:ris:invreg:0513
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    More about this item

    Keywords

    Regional Policy; cohesion funds; business dynamics;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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