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Fertile Soil for Structural Funds?

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Author Info
Sjef Ederveen () (CPB Netherlands Bureau for Economic Policy Analysis)
Henri L.F. de Groot () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)
Richard Nahuis () (CPB Netherlands Bureau for Economic Policy Analysis)

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Abstract

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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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-096/3.

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Date of creation: 07 Oct 2002
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Handle: RePEc:dgr:uvatin:20020096

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Related research
Keywords: European Cohesion Policy policy effectiveness economic growth European Union.

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
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Sjed Ederveen & Joeri Gorter & Ruud de Mooij & Richard Nahuis, 2003. "Funds and Games: The Economics of European Cohesion Policy," Occasional Papers 03, European Network of Economic Policy Research Institutes. [Downloadable!]
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  4. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  5. Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1995-1), pages 1-118. [Downloadable!]
  6. Rafael Doménech & Antonio Maudes & Juan Varela, 2000. "Fiscal flows in Europe: The redistributive effects of the EU budget," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(4), pages 631-656, December. [Downloadable!] (restricted)
  7. Jesús Crespo-Cuaresma & Maria Antoinette Dimitz & Doris Ritzberger-Grünwald, 2002. "Growth, Convergence and EU Membership," Working Papers 62, Oesterreichische Nationalbank (Austrian Central Bank). [Downloadable!]
  8. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August. [Downloadable!] (restricted)
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  9. Hall, Robert E & Jones, Charles I, 1997. "Levels of Economic Activity across Countries," American Economic Review, American Economic Association, vol. 87(2), pages 173-77, May. [Downloadable!] (restricted)
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  10. repec:bin:bpeajo:v:51:y:1995:i:1995-1:p:1-75 is not listed on IDEAS
  11. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 503-30, May. [Downloadable!] (restricted)
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  12. Jeffrey Sachs & Andrew Warner, 1995. "Economic Reform and the Progress of Global Integration," Harvard Institute of Economic Research Working Papers 1733, Harvard - Institute of Economic Research.
  13. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November. [Downloadable!] (restricted)
  14. Burnside, Craig & Dollar, David, 1997. "Aid, policies, and growth," Policy Research Working Paper Series 1777, The World Bank. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ville Kaitila, 2004. "Integration and Conditional Convergence in the Enlarged EU Area," Discussion Papers 935, The Research Institute of the Finnish Economy. [Downloadable!]
    Other versions:
  2. John Bachtler & Colin Wren, 2006. "Evaluation of European Union Cohesion policy: Research questions and policy challenges," Regional Studies, Taylor and Francis Journals, vol. 40(2), pages 143-153, April. [Downloadable!] (restricted)
  3. Julie Le Gallo & Sandy Dall'erba, 2003. "Spatial econometric analysis of the evolution of the European regional convergence process, 1980-1999," Urban/Regional 0311001, EconWPA, revised 21 May 2005. [Downloadable!]
  4. Sandy Dall'erba & Julie Le Gallo, 2003. "Geographic Spillover Effects of Regional Funds and their Impact on the European Convergence Process over 1989-1999," ERSA conference papers ersa03p136, European Regional Science Association. [Downloadable!]
  5. Ondrej Schneider, 2007. "The EU Budget Dispute – A Blessing in Disguise?," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  6. John Bradley & Edgar Morgenroth & Gerhard Untiedt, 2003. "Macro-regional evaluation of the Structural Funds using the HERMIN modelling framework," ERSA conference papers ersa03p313, European Regional Science Association. [Downloadable!]
    Other versions:
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