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The European Structural and Investment Funds and Public Investment in the EU Countries

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  • Karsten Staehr
  • Katri Urke

Abstract

Public investment is low and has declined in many EU countries since the global financial crisis. This paper estimates the effects of the various European Structural and Investment Funds (ESIF) on public investment in the EU countries. The analysis is run on annual data from 2000 to 2018 using dynamic panel data specifications. Funding from the Cohesion Fund, the EU’s facility for its less developed members, has an almost one-to-one effect on public investment in the short term and more in the longer term. Funding from the European Regional Development Fund may have some effect, but it cannot be estimated precisely. Other ESIF funds do not have predictive effects on public investment in the EU countries.

Suggested Citation

  • Karsten Staehr & Katri Urke, 2022. "The European Structural and Investment Funds and Public Investment in the EU Countries," Bank of Estonia Working Papers wp2022-3, Bank of Estonia, revised 24 Mar 2022.
    • Handle: RePEc:eea:boewps:wp2022-3
    DOI: 10.23656/25045520/032022/0193
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    More about this item

    Keywords

    public investment; structural and investment funds; EU;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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