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

Author

Listed:
  • Jan Fidrmuc

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Martin Hulényi

    (IÉSEG School Of Management [Puteaux])

  • Olga Zajkowska

    (Faculty of Economic Sciences, Warsaw University of Life Sciences, 02-787 Warsaw, Poland)

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, 2023. "The long and winding road to find the impact of EU funds on regional growth: IV and spatial analyses," Post-Print hal-04272335, HAL.
    • Handle: RePEc:hal:journl:hal-04272335
    DOI: 10.1080/00343404.2023.2217214
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