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 high-quality institutions, however, Structural Funds are effective. This result is obtained for several proxies for institutional quality and is robust for different estimation techniques (OLS, period- and country-specific fixed effects and dynamic panel data models).
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Paper provided by Utrecht School of Economics in its series Working Papers with number
03-14.
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
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.:
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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