IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/17045.html

Improving government quality in the regions of the EU and its system-wide benefits for Cohesion policy

Author

Listed:
  • Barbero Jiménez, Javier
  • Christensen, Martin
  • Conte, Andrea
  • Lecca, Patrizio
  • Rodríguez-Pose, Andrés
  • Salotti, Simone

Abstract

We quantify the general equilibrium effects on economic growth of improving the quality of institutions at the regional level in the context of the implementation of the European Cohesion Policy for the European Union and the UK. The direct impact of changes in the quality of government is integrated in a general equilibrium model to analyse the system-wide economic effects resulting from additional endogenous mechanisms and feedback effects. The results reveal a significant direct effect as well as considerable system-wide benefits from improved government quality on economic growth. A small 5% increase in government quality across European Union regions increases the impact of Cohesion investment by up to 7% in the short run and 3% in the long run. The exact magnitude of the gains depends on various local factors, including the initial endowments of public capital, the level of government quality, and the degree of persistence over time.

Suggested Citation

  • Barbero Jiménez, Javier & Christensen, Martin & Conte, Andrea & Lecca, Patrizio & Rodríguez-Pose, Andrés & Salotti, Simone, 2022. "Improving government quality in the regions of the EU and its system-wide benefits for Cohesion policy," CEPR Discussion Papers 17045, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17045
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP17045
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Rodríguez-pose Andrés & Dijkstra Lewis, 2025. "The pursuit of competitiveness and the high stakes of territorial myopia," JRC Research Reports JRC142460, Joint Research Centre.
    3. Burhan Can Karahasan & Mehmet Pinar, 2024. "Institutional Quality and Geography of Discontent in the EU," Journal of Common Market Studies, Wiley Blackwell, vol. 62(6), pages 1712-1733, November.
    4. Daniel Aparicio-Pérez & Maria Teresa Balaguer-Coll & Emili Tortosa-Ausina, 2023. "On the relative contributions of national and regional institutions to economic development," Working Papers 2023/01, Economics Department, Universitat Jaume I, Castellón (Spain).
    5. Carlo Gianelle & Fabrizio Guzzo & Javier Barbero & Simone Salotti, 2024. "The governance of regional innovation policy and its economic implications," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(4), pages 1231-1254, April.
    6. Mussida, Chiara & Parisi, Maria Laura & Pontarollo, Nicola, 2023. "Severity of material deprivation in Spanish regions and the role of the European Structural Funds," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    7. Casas, Pablo & Christou, Tryfonas & García Rodríguez, Abián & Heidelk, Tillmann & Lazarou, Nicholas Joseph & Monfort, Philippe & Salotti, Simone, 2024. "The updated RHOMOLO impact assessment of the 2014-2020 European cohesion policy (including REACT-EU)," MPRA Paper 122873, University Library of Munich, Germany.
    8. Abbasiharofteh, Milad & Kriesch, Lukas, 2024. "Not all twins are identical: the digital layer of “twin” transition market applications," Papers in Innovation Studies 2024/16, Lund University, CIRCLE - Centre for Innovation Research.
    9. Inmaculada C. Alvarez & Javier Barbero & Luis Orea & Andrés Rodríguez-Pose, 2023. "How institutions shape the economic returns of public investment in European regions," JRC Working Papers on Territorial Modelling and Analysis 2023-08, Joint Research Centre.
    10. 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).
    11. Monika Bauhr & Nicholas Charron, 2024. "Europe around the corner? How border proximity and quality of government explains European identity," European Union Politics, , vol. 25(2), pages 376-395, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:17045. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.