Structural funds are the most intensively used policy instrument by the European Union to promote economic growth in its member states and to speed up the process of convergence. This paper empirically explores the effectiveness of European Structural Funds by means of a panel data analysis for 13 countries in the European Union. We show that - on average - Structural Funds are ineffective. For countries with the ‘right' institutions, however, Structural Funds are effective. The latter result is obtained for a wide range of conditioning variables, such as openness, institutional quality, corruption and indicators for good governance.
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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Papers with number
10.
Find related papers by JEL classification: F35 - International Economics - - International Finance - - - Foreign Aid F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy
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Jesús Crespo-Cuaresma & Maria Antoinette Dimitz & Doris Ritzberger-Grünwald, 2002.
"Growth, Convergence and EU Membership,"
Working Papers
62, Oesterreichische Nationalbank (Austrian Central Bank).
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Jesus Crespo Cuaresma & Doris Ritzberger-Grünwald & Maria Antoinette Silgoner, 2008.
"Growth, convergence and EU membership,"
Applied Economics,
Taylor and Francis Journals, vol. 40(5), pages 643-656.
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