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The Impact of EU Regional Support on Growth and Employment

Author

Listed:
  • Sandy Dall’erba

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

  • Julie Le Gallo

    () (CRESE, Université de Franche-Comté)

Abstract

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.

Suggested Citation

  • Sandy Dall’erba & Julie Le Gallo, 2007. "The Impact of EU Regional Support on Growth and Employment," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(7-8), pages 324-340, September.
  • Handle: RePEc:fau:fauart:v:57:y:2007:i:7-8:p:324-340
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    References listed on IDEAS

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    1. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics,in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308 Elsevier.
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    6. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
    7. 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, September.
    8. 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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    Citations

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    Cited by:

    1. Tausch, Arno, 2008. "308 Billion Euros into the Sand? The Debacle of the EU's Regional Policy [308 Milliarden Euro in den Sand? Zum Debakel der EU-Regionalpolitik]," MPRA Paper 10609, University Library of Munich, Germany.
    2. Richard Sellner & Wolfgang Polasek, 2011. "Does Globalization affect Regional Growth? Evidence for NUTS-2 Regions in EU-27," ERSA conference papers ersa11p819, European Regional Science Association.
    3. Rodríguez-Pose, Andrés & Novak, Katja, 2013. "Learning processes and economic returns in European Cohesion policy," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 25, pages 1-20.
    4. Tobias Hagen & Philipp Mohl, 2011. "Econometric Evaluation of EU Cohesion Policy: A Survey," Chapters,in: International Handbook on the Economics of Integration, Volume III, chapter 16 Edward Elgar Publishing.
    5. Elisa Montresor & Francesco Pecci & Nicola Pontarollo, 2010. "The evaluation of european structural funds on economic convergence with the application of spatial filtering technique," Working Papers 07/2010, University of Verona, Department of Economics.
    6. Mustra Vinko & Malesevic Perovic Lena & Golem Silvia, 2014. "Social attitudes and regional inequalities," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 1, pages 66-73.
    7. repec:kap:jgeosy:v:19:y:2017:i:4:d:10.1007_s10109-017-0249-y is not listed on IDEAS
    8. Sandy Dall'erba & Eveline Van Leeuwen, 2006. "Does Agricultural Employment Benefit From Eu Support?," ERSA conference papers ersa06p96, European Regional Science Association.
    9. Sandy DALL’ERBA & Rachel GUILLAIN & Julie LE GALLO, 2009. "Impact Of Structural Funds On Regional Growth: How To Reconsider A 9 Year-Old Black Box," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 30, pages 77-100.
    10. Montresor, Elisa & Pecci, Francesco & Pontarollo, Nicola, 2011. "The convergence process of the European regions: the role of Regional Policy and the Common Agricultural Policy," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 113(2), October.
    11. Dahl, Juliana, 2013. "Innovation and growth in regions with specific geographical features," Kiel Advanced Studies Working Papers 463, Kiel Institute for the World Economy (IfW).
    12. Ondrej Schneider, 2007. "The EU Budget Dispute – A Blessing in Disguise?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 57(7-8), pages 304-323, September.
    13. Mohl, P. & Hagen, T., 2010. "Do EU structural funds promote regional growth? New evidence from various panel data approaches," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 353-365, September.
    14. Tausch, Arno, 2009. "Ist die Globalisierung fit für das soziale Europa?
      [Is Globalization fit for Social Europe?]
      ," MPRA Paper 14264, University Library of Munich, Germany.
    15. Arno Tausch, 2009. "Das EU-Budget und der Lissabon-Prozess," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 107, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    16. Hagen, Tobias & Mohl, Philipp, 2009. "How does EU cohesion policy work? Evaluating its effects on fiscal outcome variables," ZEW Discussion Papers 09-051, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    17. Mohl, Philipp & Hagen, Tobias, 2011. "Do EU structural funds promote regional employment? Evidence from dynamic panel data models," Working Paper Series 1403, European Central Bank.
    18. Nicola Pontarollo, 2013. "Structural change, productivity growth and Structural Funds in European regions," ERSA conference papers ersa13p747, European Regional Science Association.

    More about this item

    Keywords

    European structural funds; ß-convergence; growth; employment; spatial econometrics; geographic spillovers;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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