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Regional Convergence And The Impact Of European Structural Funds Over 1989-1999: A Spatial Econometric Analysis

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Author Info
Sandy Dall'erba (REAL)
Julie Le Gallo (IERSO)

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Abstract

This paper estimates the impact of structural funds on the convergence process between 145 European regions over 1989-1999. Since the majority of these funds finance transportation infrastructures, they induce spillover effects, industry relocation and do not necessarily succeed in reducing regional inequalities. To estimate their impact, including spillover effects, we first apply spatial econometrics on a conditional beta-convergence model; second, we simulate their impact on the targeted region and then on all the other regions. The results show that structural funds have positively benefited to the targeted regions’ growth, but that spillover effects are very small in peripheral regions.

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Paper provided by EconWPA in its series Urban/Regional with number 0310005.

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Date of creation: 07 Oct 2003
Date of revision: 12 Feb 2004
Handle: RePEc:wpa:wuwpur:0310005

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Web page: http://129.3.20.41

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Related research
Keywords: European structural funds; beta-convergence; spatial econometrics; geographic spillovers;

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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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. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February. [Downloadable!] (restricted)
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  1. Shankar, Raja & Shah, Anwar, 2009. "Lessons from European Union policies for regional development," Policy Research Working Paper Series 4977, The World Bank. [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. Sassi, Maria, 2007. "Structural Change And Economic Convergence Across The Eu-15 Regions: Can The Agricultural Sector Play a Role?," 81st Annual Conference, April 2-4, 2007, Reading University 7961, Agricultural Economics Society. [Downloadable!]
  4. Sarantis Lolos, 2009. "The effect of EU structural funds on regional growth: assessing the evidence from Greece, 1990–2005," Economic Change and Restructuring, Springer, vol. 42(3), pages 211-228, August. [Downloadable!] (restricted)
  5. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute. [Downloadable!]
  6. 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!]
  7. Sascha O. Becker & Peter Egger & Maximilian Von Ehrlich & Robert Fenge, 2008. "Going NUTS: The Effect of EU Structural Funds on Regional Performance," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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