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The Impact of EU Regional Support on Growth and Employment

  • Sandy Dall’erba

    ()

    (Dept. of Geography and Regional Development, University of Arizona)

  • Julie Le Gallo

    ()

    (CRESE, Université de Franche-Comté)

In this paper the authors assess the impact of structural funds on the per capita GDP and employment convergence process of 145 European regions over 1989–1999. This paper goes beyond the recent contributions on European regional policies and convergence since each of the five objectives of regional support is studied and spatial effects are included in the analysis. For this purpose the authors use spatial econometrics to include the relevant spatial effects in the estimation of the appropriate conditional ß-convergence model. The impact of the funds and their spatial lag indicate few significant results, and when they are, their extent is very small or even negative. This raises some doubts on the efficiency of regional support and call for a deep reform for the next programming period.

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Article provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.

Volume (Year): 57 (2007)
Issue (Month): 7-8 (September)
Pages: 324-340

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Handle: RePEc:fau:fauart:v:57:y:2007:i:7-8:p:324-340
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  1. Philippe Martin, 2000. "The Role of Public Policy in the Process of Regional Convergence," Sciences Po publications info:hdl:2441/9328, Sciences Po.
  2. Barro, Robert J., 1990. "Government Spending in a Simple Model of Endogeneous Growth," Scholarly Articles 3451296, Harvard University Department of Economics.
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  8. Durlauf, S.N. & Johnson, P.A., 1994. "Multiple Regimes and Cross-Country Growth Behavior," Working papers 9419, Wisconsin Madison - Social Systems.
  9. Puga, Diego, 2001. "European Regional Policies in Light of Recent Location Theories," CEPR Discussion Papers 2767, C.E.P.R. Discussion Papers.
  10. Aadne Cappelen & Fulvio Castellacci & Jan Fagerberg & Bart Verspagen, 2003. "The Impact of EU Regional Support on Growth and Convergence in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 41, pages 621-644, 09.
  11. Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 321-359, October.
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