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Effects of EU Regional Policy: 1989-2013

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  • Becker, Sascha O.
  • Egger, Peter H.
  • von Ehrlich, Maximilian

Abstract

This paper analyzes the regional effects of EU Regional Policy during four programming periods: 1989-1993, 1994-1999, 2000-2006, 2007-2013. In particular, the focus is on the impact of transfers during the Financial and Economic Crisis and on the effects of gaining versus losing treatment status under the main Regional Policy subprogram – referred to as Objective 1 or Convergence Objective. We find that effects of Objective 1 status on growth are positive though not very long-lived: the effects of losing Objective 1 status on economic growth are negative, and the earlier positive effects on growth in the period(s) of Objective 1 treatment more or less undone. We show that the effects are weaker during the Crisis than before, in particular, on per-capita income in countries where the Crisis hit harder.

Suggested Citation

  • Becker, Sascha O. & Egger, Peter H. & von Ehrlich, Maximilian, 2018. "Effects of EU Regional Policy: 1989-2013," Regional Science and Urban Economics, Elsevier, vol. 69(C), pages 143-152.
  • Handle: RePEc:eee:regeco:v:69:y:2018:i:c:p:143-152
    DOI: 10.1016/j.regsciurbeco.2017.12.001
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    Cited by:

    1. Julia Bachtrögler & Christoph Hammer & Wolf Heinrich Reuter & Florian Schwendinger, 2017. "Spotlight on the beneficiaries of EU regional funds: A new firm-level dataset," Department of Economics Working Papers wuwp246, Vienna University of Economics and Business, Department of Economics.
    2. Felix Angel Popescu & Mihai Berinde, 2017. "Analysis Regarding The Instruments For Impact Evaluation Of European Funds Across Practitioners," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 691-696, July.
    3. Nathaniel Lane, 2020. "The New Empirics of Industrial Policy," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 209-234, June.
    4. Briglauer, Wolfgang & Dürr, Niklas S. & Falck, Oliver & Hüschelrath, Kai, 2019. "Does state aid for broadband deployment in rural areas close the digital and economic divide?," Information Economics and Policy, Elsevier, vol. 46(C), pages 68-85.
    5. Weber, Karl Matthias & Rammer, Christian & Dinges, Michael & Dachs, Bernhard & Hud, Martin & Steindl, Claudia, 2018. "Erkenntnis- und Wissenstransfer im Kontext europäischer F&I-Politik," Studien zum deutschen Innovationssystem 12-2018, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    6. Nicky Rogge, 2019. "Regional productivity growth in the EU since 2000: something is better than nothing," Empirical Economics, Springer, vol. 56(2), pages 423-444, February.
    7. Zsolt Darvas & Guntram B. Wolff, 2018. "The EU’s Multiannual Financial Framework and some implications for CESEE countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3-18, pages 77-86.
    8. Mindaugas Butkus & Alma Mačiulytė-Šniukienė & Kristina Matuzevičiūtė, 2020. "Mediating Effects of Cohesion Policy and Institutional Quality on Convergence between EU Regions: An Examination Based on a Conditional Beta-Convergence Model with a 3-Way Multiplicative Term," Sustainability, MDPI, Open Access Journal, vol. 12(7), pages 1-37, April.

    More about this item

    Keywords

    Regional transfers; Local average treatment effects; European Union;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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