Advanced Search
MyIDEAS: Login to save this paper or follow this series

Lessons from European Union policies for regional development

Contents:

Author Info

  • Shankar, Raja
  • Shah, Anwar

Abstract

Regional disparities present an ever present development challenge in most countries, especially those with large geographic areas under their jurisdiction. A neglect of these inequities may create the potential for disunity and, in extreme cases, for disintegration. In view of this, most countries actively pursue policies with a view to helping lagging regions catch up with faster growing regions. These policies have at best a mixed record of success. It is therefore useful to discern what type of policies work and why? In this context learning from the experience of the European Union (EU) may be particularly instructive as, over the years, it has provided significant support to assist poorer regions achieve convergence with the richer regions. This paper reviews the impact of EU policies for regional development to draw lessons of interest to other countries pursuing similar goals. The paper concludes that policies that serve to create an internal common market by creating a level playing field that enables poorer regions to integrate with the broader national and global economies have the best potential to advance regional income convergence. In this context, removal of barriers to trade and factor mobility and providing enhanced access to information and technology to the lagging regions should be main policy priorities for regional development.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2009/06/22/000158349_20090622133035/Rendered/PDF/WPS4977.pdf
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4977.

as in new window
Length:
Date of creation: 01 Jun 2009
Date of revision:
Handle: RePEc:wbk:wbrwps:4977

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: Regional Rural Development; Trade and Regional Integration; Political Economy; Economic Theory&Research; Debt Markets;

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Canova, Fabio & Marcet, Albert, 1995. "The Poor Stay Poor: Non-Convergence Across Countries and Regions," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1265, C.E.P.R. Discussion Papers.
  2. Krugman, Paul R & Venables, Anthony J, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(4), pages 857-80, November.
  3. Shankar, Raja & Shah, Anwar, 2003. "Bridging the Economic Divide Within Countries: A Scorecard on the Performance of Regional Policies in Reducing Regional Income Disparities," World Development, Elsevier, Elsevier, vol. 31(8), pages 1421-1441, August.
  4. Ron Martin & Peter Tyler, 2006. "Evaluating the impact of the structural funds on objective 1 regions: An exploratory discussion," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 40(2), pages 201-210.
  5. Teresa Garcia-Milà & Therese McGuire, 2001. "Do Interregional Transfers Improve the Economic Performance of Poor Regions? The Case of Spain," International Tax and Public Finance, Springer, Springer, vol. 8(3), pages 281-296, May.
  6. Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 16(32), pages 205-253, 04.
  7. Fabio Canova, 1997. "Testing for convergence clubs in income per-capita: A predictive density approach," Economics Working Papers 404, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
  8. John Bachtler & Colin Wren, 2006. "Evaluation of European Union Cohesion policy: Research questions and policy challenges," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 40(2), pages 143-153.
  9. Boltho, Andrea & Carlin, Wendy & Scaramozzino, Pasquale, 1997. "Will East Germany Become a New Mezzogiorno?," Journal of Comparative Economics, Elsevier, vol. 24(3), pages 241-264, June.
  10. Frank Barry, 2003. "Economic Integration and Convergence Processes in the EU Cohesion Countries," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 41(5), pages 897-921, December.
  11. Angel de la Fuente, 2002. "Does cohesion policy work?," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 563.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  12. Andrés Rodríguez-Pose & Ugo Fratesi, 2003. "Between development and social policies: the impact of European Structural Funds in Objective 1 Regions," European Economy Group Working Papers, European Economy Group 28, European Economy Group.
  13. Farrell, Mary, 2004. "Regional integration and cohesion--lessons from Spain and Ireland in the EU," Journal of Asian Economics, Elsevier, Elsevier, vol. 14(6), pages 927-946, January.
  14. Cem Ertur & Wilfried Koch, 2006. "Regional disparities in the European Union and the enlargement process: an exploratory spatial data analysis, 1995–2000," The Annals of Regional Science, Springer, Springer, vol. 40(4), pages 723-765, December.
  15. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(2), pages 407-37, May.
  16. Sjed Ederveen & Joeri Gorter & Ruud de Mooij & Richard Nahuis, 2003. "Funds and Games: The Economics of European Cohesion Policy," Occasional Papers, European Network of Economic Policy Research Institutes 03, European Network of Economic Policy Research Institutes.
  17. Juan R. Cuadrado-Roura & TomÂs Mancha-Navarro & RubÊn Garrido-Yserte, 2000. "Regional productivity patterns in Europe: An alternative approach," The Annals of Regional Science, Springer, Springer, vol. 34(3), pages 365-384.
  18. Jan Fagerberg & Bart Verspagen, 1996. "Heading for Divergence? Regional Growth in Europe Reconsidered," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 34(3), pages 431-448, 09.
  19. Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 17(35), pages 321-359, October.
  20. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(437), pages 1045-55, July.
  21. Ben Gardiner & Ron Martin & Tyler Peter, 2004. "Competitiveness, Productivity and Economic Growth across the European Regions," ERSA conference papers ersa04p333, European Regional Science Association.
  22. Harald Badinger & Werner Muller & Gabriele Tondl, 2004. "Regional Convergence in the European Union, 1985- 1999: A Spatial Dynamic Panel Analysis," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(3), pages 241-253.
  23. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, Elsevier, vol. 40(3-5), pages 951-958, April.
  24. Sandy Dall'erba & Julie Le Gallo, 2003. "Regional Convergence And The Impact Of European Structural Funds Over 1989-1999: A Spatial Econometric Analysis," Urban/Regional, EconWPA 0310005, EconWPA, revised 12 Feb 2004.
  25. Juan R. Cuadrado-Roura, 2001. "Regional convergence in the European Union: From hypothesis to the actual trends," The Annals of Regional Science, Springer, Springer, vol. 35(3), pages 333-356.
  26. Julie Le Gallo & Sandy Dall'erba, 2006. "Evaluating the Temporal and Spatial Heterogeneity of the European Convergence Process, 1980-1999," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 46(2), pages 269-288.
  27. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1286, C.E.P.R. Discussion Papers.
  28. Frank Barry & John Bradley & Aoife Hannan, 2001. "The Single Market, the Structural Funds and Ireland's Recent Economic Growth," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 39(3), pages 537-552, 09.
  29. Gottheil, Fred, 2003. "Ireland: what's Celtic about the Celtic Tiger?," The Quarterly Review of Economics and Finance, Elsevier, Elsevier, vol. 43(5), pages 720-737.
  30. Simona Milio, 2007. "Can Administrative Capacity Explain Differences in Regional Performances? Evidence from Structural Funds Implementation in Southern Italy," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 41(4), pages 429-442.
  31. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, American Economic Association, vol. 88(1), pages 1-32, March.
  32. John Bachtler & Rona Michie, 1997. "The Interim Evaluation of EU Regional Development Programmes: Experiences from Objective 2 Regions," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 31(9), pages 849-858.
  33. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
  34. David Bailey & Lisa de Propris, 2004. "A Bridge Too Phare? EU Pre-Accession Aid and Capacity-Building in the Candidate Countries," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 42(1), pages 77-98, 02.
  35. Clarysse, Bart & Muldur, Ugur, 2001. "Regional cohesion in Europe? An analysis of how EU public RTD support influences the techno-economic regional landscape," Research Policy, Elsevier, Elsevier, vol. 30(2), pages 275-296, February.
  36. repec:fth:iniesr:430 is not listed on IDEAS
  37. Matthew Lambrinidis & Yannis Psycharis & Antonis Rovolis, 2005. "Regional allocation of public infrastructure investment: The case of Greece," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(9), pages 1231-1244.
  38. Philippe Martin, 1998. "Can Regional Policies Affect Growth and Geography in Europe?," The World Economy, Wiley Blackwell, vol. 21(6), pages 757-774, 08.
  39. Pereira, Alfredo M, 1997. "Development Policies in the EU: An International Comparison," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 1(2), pages 219-35, June.
  40. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(3), pages 483-99, June.
  41. Christopher K. Ansell & Craig A. Parsons & Keith A. Darden, 1997. "Dual Networks in European Regional Development Policy," Journal of Common Market Studies, Wiley Blackwell, Wiley Blackwell, vol. 35(3), pages 347-375, 09.
  42. Welsch, Heinz & Bonn, Udo, 2006. "Is there a "real divergence" in the European Union? A comment," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 17(2), pages 259-265, June.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:4977. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.