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The long and winding road to find the impact of EU funds on regional growth: IV and spatial analyses

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  • Jan Fidrmuc
  • Martin Hulényi
  • Olga Zajkowska

Abstract

We contribute to the analysis of the impact of European Union funds on European regional development. We find that the European funds have a significantly positive effect on regional economic growth in the European Union. This result is obtained both with ordinary least squares (OLS), and with two-stage least squares (2SLS) using the presence of environmentally protected areas as an instrument. Furthermore, we find that interregional spillovers are important: a significant part of the favourable effect seems to take place in nearby regions rather than in the recipient region.

Suggested Citation

  • Jan Fidrmuc & Martin Hulényi & Olga Zajkowska, 2024. "The long and winding road to find the impact of EU funds on regional growth: IV and spatial analyses," Regional Studies, Taylor & Francis Journals, vol. 58(3), pages 583-600, March.
    • Handle: RePEc:taf:regstd:v:58:y:2024:i:3:p:583-600
    DOI: 10.1080/00343404.2023.2217214
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