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Fertile soil for Structural Funds? A panel data analysis of the conditional effectiveness of European cohesion policy

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Author Info
Sjef Ederveen ()
Richard Nahuis ()
Henri L.F. de Groot ()

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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 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.

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Length: 19 pages
Date of creation: Oct 2003
Date of revision:
Handle: RePEc:use:tkiwps:0314

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

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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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    Other versions:
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    Other versions:
  6. 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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  13. 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.
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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. Martin Falk & Franz Sinabell, 2008. "The Effectiveness of Objective 1 Structural Funds in the EU 15: New Empirical Evidence from NUTS 3 Regions," WIFO Working Papers 310, WIFO. [Downloadable!]
  2. Mohl, Philipp & Hagen, Tobias, 2008. "Does EU Cohesion Policy Promote Growth? Evidence from Regional Data and Alternative Econometric Approaches," ZEW Discussion Papers 08-086, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  3. Davide Fiaschi, Andrea Mario Lavezzi and Angela Parenti, 2009. "Productivity Dynamics across European Regions: the Impact of Structural and Cohesion Funds," Discussion Papers 2009/84, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
  4. Ville Kaitila, 2004. "The Factor Intensity of Accession and EU15 Countries´ Comparative Advantage in the Internal Market," Discussion Papers 925, The Research Institute of the Finnish Economy. [Downloadable!]
  5. Jonathan Jones & Colin Wren, 2008. "FDI Location Across British Regions and Inward Investment Policy," SERC Discussion Papers 0013, Spatial Economics Research Centre, LSE. [Downloadable!]
  6. Kjetil Bjorvatn & Nicola Daniele Coniglio, 2004. "Regional Policy and rent-seeking," ERSA conference papers ersa04p162, European Regional Science Association. [Downloadable!]
  7. Boldrin, Michele & Canova, Fabio, 2003. "Regional Policies and EU Enlargement," CEPR Discussion Papers 3744, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  8. Cornelius Baehr, 2006. "How Does Sub-National Autonomy Affect the Effectiveness of Structural Funds?," ERSA conference papers ersa06p470, European Regional Science Association. [Downloadable!]
    Other versions:
  9. T. Dhont & F. Heylen, 2006. "Employment and growth in Europe and the US - The role of fiscal policy composition," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/420, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
    Other versions:
  10. GUILLAIN, Rachel & DALL'ERBA, Sandy & LE GALLO, Julie, 2007. "Politiques de développement et croissance régionale en Europe : le rôle des rendements croissants et des dépendances spatiales," LEG - Document de travail - Economie 2007-02, LEG, Laboratoire d'Economie et de Gestion, CNRS UMR 5118, Université de Bourgogne. [Downloadable!]
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