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Cohesion policy in the European Union: Growth, geography, institutions

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  • Thomas Farole

    () (The World Bank)

  • Andrés Rodríguez-Pose

    () (IMDEA Ciencias Sociales)

  • Michael Storper

    () (London School of Economics)

Abstract

Since the reform of the Structural Funds in 1989, the EU has made the principle of cohesion one of its key policies. Much of the language of European cohesion policy eschews the idea of tradeoffs between efficiency and equity, suggesting it is possible to maximise overall growth whilst also achieving continuous convergence in outcomes and productivity across Europe’s regions. Yet, given the rise in inter-regional disparities, it is unclear that cohesion policy has altered the pathway of development from what would have occurred in the absence of intervention. This paper draws on geographical economics, institutionalist social science, and endogenous growth theory, with the aim of providing a fresh look at cohesion policy. By highlighting a complex set of potential tradeoffs and inter-relations – overall growth and efficiency; inter-territorial equity; territorial democracy and governance capacities; and social equity within places – it revisits the rationale of cohesion policy, with particular attention to the geographical dynamics of economic development.

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Bibliographic Info

Paper provided by Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales in its series Working Papers with number 2010-14.

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Date of creation: 25 Jun 2010
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Publication status: Published in Journal of Common Market Studies 49(5), September 2011: 1089-1111
Handle: RePEc:imd:wpaper:wp2010-14

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Cited by:
  1. Mikel Navarro Arancegui & Mari Jose Aranguren Querejeta & Edurne Magro Montero, . "Smart Specialisation Strategies: The Case of the Basque Country," Working Papers 2011R07, Basque Institute of Competitiveness.
  2. d'Agostino, Giorgio & Scarlato, Margherita, 2011. "Innovation, Growth and Quality of Life: a Theoretical Model and an Estimate for the Italian Regions," MPRA Paper 31939, University Library of Munich, Germany.
  3. Rodríguez-Pose, Andrés, 2011. "Trade and regional inequality," CEPR Discussion Papers 8616, C.E.P.R. Discussion Papers.
  4. d'Agostino, Giorgio & Scarlato, Margherita, 2012. "Inclusive Institutions, Innovation and Economic Growth: Estimates for European Countries," MPRA Paper 43098, University Library of Munich, Germany.
  5. Mantino, Francesco & Tarangioli, Serena & Tudini, Lucia, 2010. "Co-ordination and networks at sub-regional level: how programmes can meet rural needs," 118th Seminar, August 25-27, 2010, Ljubljana, Slovenia 95319, European Association of Agricultural Economists.
  6. Fabrizio Barca & Philip McCann & Andrés Rodríguez-Pose, 2011. "The case for regional development intervention: Place-based versus place-neutral approaches," Working Papers 2011-15, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.

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