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How does Institutional Setting Affect the Impact of EU Structural Funds on Economic Cohesion? New Evidence from Central and Eastern Europe

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  • Gruševaja, Marina
  • Pusch, Toralf

Abstract

Structural Funds are the main instrument of the EU cohesion policy. Their effective use is subject to an ongoing debate in political and scientific circles. European fiscal assistance under this heading should promote economic and social cohesion in the member states of the European Union. Recently, the domestic institutional capacity to absorb, to distribute and to invest Structural Funds effectively has become a crucial determinant of the cohesion process and has attracted attention of the scientific community. The aim of this study is to shed light on the effectiveness of Structural Funds in the countries of the first Central and Eastern European enlargement round in 2004. Using regional data for these countries, we have a look on the impact of several institutional governance variables on the effectiveness of Structural Funds. In the interpretation of results, reference is made to regional economics. Results of the empirical analysis indicate an influence of certain institutional variables on the effectiveness of Structural Funds in the new member states.

Suggested Citation

  • Gruševaja, Marina & Pusch, Toralf, 2011. "How does Institutional Setting Affect the Impact of EU Structural Funds on Economic Cohesion? New Evidence from Central and Eastern Europe," IWH Discussion Papers 17/2011, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:iwh-17-11
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    Cited by:

    1. Arnaoutoglou, Nikolaos-Boleslav, 2022. "Institutions and Cohesion Policy in the European Union," MPRA Paper 113543, University Library of Munich, Germany.
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    More about this item

    Keywords

    EU cohesion policy; Structural Funds; institutional setting; EU new member states; EU-Kohäsionspolitik; Strukturfonds; Institutionen; Neue EU-Mitgliedsländer;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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