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Regional needs, regional targeting and regional growth: an assessment of EU Cohesion Policy in UK regions

Author

Listed:
  • Marco Di Cataldo
  • Vassilis Monastiriotis

Abstract

With the prospective exit of the UK from the European Union (EU), a crucial question is whether EU Structural Funds have been beneficial for the country and which aspects of Cohesion Policy should be maintained if EU funds are to be replaced. This paper addresses this question through a twofold investigation, assessing not only whether but also how EU funds have contributed to regional growth in the UK from 1994 to 2013. It documents a significant and robust effect of Cohesion Policy in the UK, with higher proportions of Structural Funds associated with higher economic growth both on the whole and particularly in the less developed regions of the country. In addition, it is shown that the strategic orientation of investments also plays a distinct role for regional growth. While concentration of investments on specific pillars seems to have no direct growth effects, unless regions can rely on pre-existing competitive advantages in key development areas, clear evidence is unveiled that targeting investments to specific areas of relative regional need has a significant and autonomous effect on growth. These findings have important implications for the design of regional policy interventions in Britain after Brexit.

Suggested Citation

  • Marco Di Cataldo & Vassilis Monastiriotis, 2020. "Regional needs, regional targeting and regional growth: an assessment of EU Cohesion Policy in UK regions," Regional Studies, Taylor & Francis Journals, vol. 54(1), pages 35-47, January.
    • Handle: RePEc:taf:regstd:v:54:y:2020:i:1:p:35-47
    DOI: 10.1080/00343404.2018.1498073
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    1. repec:ers:journl:v:xxiv:y:2021:i:2b:p:328-362 is not listed on IDEAS
    2. repec:ers:journl:v:xxiv:y:2021:i:special2:p:503-512 is not listed on IDEAS
    3. Crescenzi, Riccardo & Di Cataldo, Marco & Giua, Mara, 2020. "It’s not about the money. EU funds, local opportunities, and Euroscepticism," Regional Science and Urban Economics, Elsevier, vol. 84(C).
    4. Marco Di Cataldo & Vassilis Monastiriotis & Andrés Rodríguez‐Pose, 2022. "How ‘Smart’ Are Smart Specialization Strategies?," Journal of Common Market Studies, Wiley Blackwell, vol. 60(5), pages 1272-1298, September.
    5. Carlos San Juan Mesonada & Carlos Sunyer Manteiga, 2020. "European Structural and Investment Funds and Regional Convergence: The Impact of Public Deficit in Beta-Convergence," EconPol Working Paper 47, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    6. Martin Ferry, 2021. "Pulling things together: regional policy coordination approaches and drivers in Europe [‘PiS wchodzi w buty marszałków. Cel? Miliony z funduszy europejskich’]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 40(1), pages 37-57.
    7. Marco Di Cataldo & Elena Renzullo, 2024. "EU Money and Mayors: Does Cohesion Policy affect local electoral outcomes?," Working Papers 2024: 02, Department of Economics, University of Venice "Ca' Foscari".
    8. Dettmann, Eva & Fritz, Sarah, 2025. "A helping hand, but not a lift. EU Cohesion Policy and regional development," IWH Discussion Papers 18/2025, Halle Institute for Economic Research (IWH).
    9. Elzbieta Ociepa-Kicinska & Rafal Czyzycki & Piotr Szklarz & Rafal Kloska, 2021. "Impact of EU Funds on the Level of Regional Socio-Economic Development: The Case of Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(2 - Part ), pages 328-362.
    10. Andrés Rodríguez-Pose & Lewis Dijkstra, 2021. "Does Cohesion Policy reduce EU discontent and Euroscepticism?," Regional Studies, Taylor & Francis Journals, vol. 55(2), pages 354-369, February.
    11. Korneliusz Pylak & Tomasz Warowny, 2021. "Related Variety of Regional Smart Specialization Strategies," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 534-544.
    12. repec:ers:journl:v:xxiv:y:2021:i:special2:p:534-544 is not listed on IDEAS
    13. Julia Bachtrögler-Unger, 2024. "The Role of Administrative Capacity for an Effective Implementation of EU Cohesion Policy," WIFO Working Papers 688, WIFO.
    14. Wanda Biedka & Mikołaj Herbst & Jakub Rok & Piotr Wójcik, 2022. "The local‐level impact of human capital investment within the EU cohesion policy in Poland," Papers in Regional Science, Wiley Blackwell, vol. 101(2), pages 303-325, April.
    15. Enrique López‐Bazo, 2022. "The Impact of Cohesion Policy on Regional Differences in Support for the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 60(5), pages 1219-1236, September.
    16. Huanjia Ma & Raquel Ortega-Argiles & Matthew Lyons, 2024. "UK levelling up R&D mission effects: A multi-region input-output approach," MIOIR Working Paper Series 2024-03, The Manchester Institute of Innovation Research (MIoIR), The University of Manchester.
    17. Marco Di Cotaldo & Vassilis Monastiriotis & Andres Rodriguez-Pose, 2020. "Populism Amidst Prosperity: How ‘smart’ are Smart Specialisation strategies?," LEQS – LSE 'Europe in Question' Discussion Paper Series 162, European Institute, LSE.
    18. Eirini Aivazidou & Giovanni Cunico & Edoardo Mollona, 2020. "Beyond the EU Structural Funds’ Absorption Rate: How Do Regions Really Perform?," Economies, MDPI, vol. 8(3), pages 1-24, July.
    19. Paolo Di Caro & Ugo Fratesi, 2022. "One policy, different effects: Estimating the region‐specific impacts of EU cohesion policy," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 307-330, January.
    20. repec:ehl:lserod:107085 is not listed on IDEAS
    21. Mindaugas Butkus & Alma Maciulyte-Sniukiene & Renata Macaitiene & Kristina Matuzeviciute, 2021. "A New Approach to Examine Non-Linear and Mediated Growth and Convergence Outcomes of Cohesion Policy," Economies, MDPI, vol. 9(3), pages 1-28, July.
    22. Luisa Schneider & Daniela Wech & Matthias Wrede, 2022. "Political alignment and project funding," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1561-1589, December.
    23. Pinar, Mehmet & Karahasan, Burhan Can, 2024. "Asymmetric effects of EU cohesion policy on EU regional growth: The role of macroeconomic uncertainty," The Journal of Economic Asymmetries, Elsevier, vol. 30(C).
    24. Marco Di Cataldo & Vassilis Monastiriotis & Andres Rodriguez-Pose, 2020. "How ‘smart’ are Smart Specialisation strategies?," Papers in Evolutionary Economic Geography (PEEG) 2052, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2020.

    More about this item

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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