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Fostering the development of European regions: a spatial dynamic panel data analysis of the impact of cohesion policy

Author

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  • Salima Bouayad Agha

    (GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université)

  • Nadine N. Turpin

    (UMR METAFORT - Mutations des activités des espaces et des formes d'organisation dans les territoires ruraux - INRA - Institut National de la Recherche Agronomique - AgroParisTech - CEMAGREF - Centre national du machinisme agricole, du génie rural, des eaux et forêts - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement)

  • Lionel Vedrine

    (UMR METAFORT - Mutations des activités des espaces et des formes d'organisation dans les territoires ruraux - INRA - Institut National de la Recherche Agronomique - AgroParisTech - CEMAGREF - Centre national du machinisme agricole, du génie rural, des eaux et forêts - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement)

Abstract

This paper uses a conditional-convergence econometric model to investigate whether cohesion policy affects European economies. Its main contribution is to consider both spatial and temporal dynamics in assessing the impact of European cohesion policy. Econometric estimations rely on a dataset of 143 EU-14-NUTS-1/NUTS-2 regions from 1980 to 2005. The results suggest that Objective 1 programmes have a direct effect on regional gross domestic product per capita growth rates, whereas total Structural Funds do not. Moreover, consideration of the spatial dimension of the panel brings to light a still significant, but less important, impact of Structural Funds.

Suggested Citation

  • Salima Bouayad Agha & Nadine N. Turpin & Lionel Vedrine, 2013. "Fostering the development of European regions: a spatial dynamic panel data analysis of the impact of cohesion policy," Post-Print hal-01000321, HAL.
    • Handle: RePEc:hal:journl:hal-01000321
    DOI: 10.1080/00343404.2011.628930
    Note: View the original document on HAL open archive server: https://hal.science/hal-01000321
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    References listed on IDEAS

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    1. Kukenova, Madina & Monteiro, Jose-Antonio, 2008. "Spatial Dynamic Panel Model and System GMM: A Monte Carlo Investigation," MPRA Paper 11569, University Library of Munich, Germany, revised Nov 2008.
    2. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    3. Jacobs, J.P.A.M. & Ligthart, J.E. & Vrijburg, H., 2009. "Dynamic Panel Data Models Featuring Endogenous Interaction and Spatially Correlated Errors," Other publications TiSEM d473cc67-03f6-4389-9a9f-3, Tilburg University, School of Economics and Management.
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