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Heterogeneous Effects of the Cohesion Policy on Economic Growth in Poland: A Panel Data Analysis from 2007 to 2020

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  • Łukasz Robert Piętak

Abstract

The aim of the study is twofold. Firstly, it examines the heterogeneous effects of Cohesion Policy on the growth of the NUTS 3 subregions of Poland. Secondly, it evaluates whether differences in Cohesion Policy outcomes are linked to the level of assistance. The econometric analysis spans the two planning periods of Cohesion Policy, covering 2007 to 2020. By using the dynamic Mean Group (DM) model, the study finds that Cohesion Policy produces a positive impact in 33 subregions (45%), an insignificant impact in 36 subregions (49%), and a negative impact in 4 subregions (5%). Furthermore, the econometric analysis finds that the effectiveness of EU policy is not determined solely by the assistance allocated to subregions. There are NUTS 3 units where a below-average influx of funds has yielded positive results, and others where a great deal of assistance has negatively affected economic performance. These results remain robust across various econometric approaches.

Suggested Citation

  • Łukasz Robert Piętak, 2025. "Heterogeneous Effects of the Cohesion Policy on Economic Growth in Poland: A Panel Data Analysis from 2007 to 2020," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 2, pages 175-199.
    • Handle: RePEc:aoq:ekonom:y:2025:i:2:p:175-199
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    More about this item

    Keywords

    Poland; Cohesion Policy; subregional growth; heterogenous results;
    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
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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