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Undermining the principle of concentration?: European Union regional policy and the socio-economic disadvantage of European regions

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  • Crescenzi, Riccardo

Abstract

This paper sets out to analyse the regional policy of the European Union by assessing whether the actual distribution of funds to the regions undermines the principle of territorial concentration. The empirical analysis shows that, due to either political equilibriums or inaccurate assumptions about the most cost-effective allocation of the funds, the sources of structural disadvantage are more spatially concentrated than the funds devoted to compensating this disadvantage and reveals a weak association between socio-economic disadvantage and European Union funding. Corrections in allocation mechanisms are recommended in order to increase fund concentration and earmark resources more adequately to disadvantaged regions.

Suggested Citation

  • Crescenzi, Riccardo, 2009. "Undermining the principle of concentration?: European Union regional policy and the socio-economic disadvantage of European regions," LSE Research Online Documents on Economics 23317, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:23317
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    More about this item

    Keywords

    regional policy; regional development; socio-economic factors; European Union; regions; economic growth;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • 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
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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