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Absorption of Regional Funds: A Comparative Analysis

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  • Jale Tosun

Abstract

This article evaluates the determinants of the absorption performance of European Union Member States with regard to the European Regional Development Fund's (ERDF) 2000–06 programming period. Theoretically grounded in Europeanization research and studies of regional governance, the empirical analysis concentrates on the ERDF absorption performance of 25 Member States at the end of the programming period in 2008. The results of Tobit models show a positive relationship between ERDF absorption and government capacity. The estimation findings also demonstrate that new Member States generally had higher absorption rates than old Member States. Furthermore, Member States with high income levels were less likely to maximize the absorption of their ERDF allocations. Finally, there is some support for the hypothesis that fiscal decentralization has a negative impact on absorption performance.

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  • Jale Tosun, 2014. "Absorption of Regional Funds: A Comparative Analysis," Journal of Common Market Studies, Wiley Blackwell, vol. 52(2), pages 371-387, March.
  • Handle: RePEc:bla:jcmkts:v:52:y:2014:i:2:p:371-387
    DOI: 10.1111/jcms.12088
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    3. Andrei – Cristian Matei & Mihaela Onofrei & Ioana Gavriluta & Domnita Gritco & Lenuța Cojocariu, 2021. "The impact of public funding on the development of Romanian agriculture after EU integration," Journal of Financial Studies, Institute of Financial Studies, vol. 10(6), pages 94-101, May.
    4. Madalina Anghel & Diana Dumitrescu & Daniel Dumitrescu & Georgiana Nita, 2016. "Role of banks in in European funds absorptionto maintain macroeconomic stability," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 64(9), pages 43-49, September.
    5. Bachtrögler, Julia, 2016. "On the effectiveness of EU structural funds during the Great Recession: Estimates from a heterogeneous local average treatment effects framework," Department of Economics Working Paper Series 230, WU Vienna University of Economics and Business.
    6. Gheorghe MATEI & Elena Mădălina OPRIȚESCU, 2017. "Methods of Quantifying the Impact of Structural Funds Absorption on Regional Development," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(19), pages 19-27, November.
    7. Valentin-Marian Antohi & Monica Laura Zlati & Romeo Victor Ionescu & Mihaela Neculita & Raluca Rusu & Aurelian Constantin, 2020. "Attracting European Funds in the Romanian Economy and Leverage Points for Securing their Sustainable Management: A Critical Auditing Analysis," Sustainability, MDPI, Open Access Journal, vol. 12(13), pages 1-27, July.
    8. Julia Bachtrögler & Christoph Hammer & Wolf Heinrich Reuter & Florian Schwendinger, 2019. "Guide to the galaxy of EU regional funds recipients: evidence from new data," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(1), pages 103-150, February.
    9. Novosák Jiří & Novosáková Jana & Hájek Oldřich & Horváth Peter, 2017. "Regional disparities, absorption capacity and Structural Fund payments: A case study of the Czech Republic," Quaestiones Geographicae, Sciendo, vol. 36(4), pages 81-92, December.
    10. Cristian Incaltarau & Gabriela Carmen Pascariu & Neculai‐Cristian Surubaru, 2020. "Evaluating the Determinants of EU Funds Absorption across Old and New Member States – the Role of Administrative Capacity and Political Governance," Journal of Common Market Studies, Wiley Blackwell, vol. 58(4), pages 941-961, July.
    11. Katharina Zimmermann, 2016. "Local Responses to the European Social Fund: A Cross-City Comparison of Usage and Change," Journal of Common Market Studies, Wiley Blackwell, vol. 54(6), pages 1465-1484, November.
    12. Novosák Jiří & Hájek Oldřich & Novosáková Jana & Koleňák Jiří, 2018. "Spatial Dimension of Czech Enterprise Support Policy: Where are Public Expenditures Allocated?," Review of Economic Perspectives, Sciendo, vol. 18(4), pages 333-351, December.
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    14. Gabriela Victoria ANGHELACHE & Ștefan Daniel ARMEANU & Constantin ANGHELACHE, 2020. "The European Union in the face of the prospect of achieving major objectives in the conditions of the pandemic and economic-financial crisis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(625), W), pages 5-20, Winter.
    15. Julia Bachtrögler, 2016. "On the effectiveness of EU structural funds during the Great Recession: Estimates from a heterogeneous local average treatment effects framework," Department of Economics Working Papers wuwp230, Vienna University of Economics and Business, Department of Economics.
    16. Georgiana Raluca Ladaru & Maria Cristina Padure & Eugen Prioteasa, 2014. "The analysis of absorption rate of structural funds for the 2007-2013 programming period. The case of Romania," International Conference on Competitiveness of Agro-food and Environmental Economy Proceedings, The Bucharest University of Economic Studies, vol. 3, pages 213-223.
    17. Constantin ANGHELACHE & Mădălina-Gabriela ANGHEL & Ștefan Virgil IACOB & Ana Maria POPESCU, 2021. "Is the creation of major objectives in the European Union an objective that may constitute a challenge for the Member States of the European Union?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(626), S), pages 101-116, Spring.
    18. Carlos Mendez & John Bachtler, 2017. "Financial Compliance in the European Union: A Cross-National Assessment of Financial Correction Patterns and Causes in Cohesion Policy," Journal of Common Market Studies, Wiley Blackwell, vol. 55(3), pages 569-592, May.

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