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Cohesion policy in the European Union: Growth, geography, institutions

  • Thomas Farole

    ()

    (The World Bank)

  • Andrés Rodríguez-Pose

    ()

    (IMDEA Ciencias Sociales)

  • Michael Storper

    ()

    (London School of Economics)

Since the reform of the Structural Funds in 1989, the EU has made the principle of cohesion one of its key policies. Much of the language of European cohesion policy eschews the idea of tradeoffs between efficiency and equity, suggesting it is possible to maximise overall growth whilst also achieving continuous convergence in outcomes and productivity across Europe’s regions. Yet, given the rise in inter-regional disparities, it is unclear that cohesion policy has altered the pathway of development from what would have occurred in the absence of intervention. This paper draws on geographical economics, institutionalist social science, and endogenous growth theory, with the aim of providing a fresh look at cohesion policy. By highlighting a complex set of potential tradeoffs and inter-relations – overall growth and efficiency; inter-territorial equity; territorial democracy and governance capacities; and social equity within places – it revisits the rationale of cohesion policy, with particular attention to the geographical dynamics of economic development.

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File URL: http://repec.imdea.org/pdf/imdea-wp2010-14.pdf
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Paper provided by Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales in its series Working Papers with number 2010-14.

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Date of creation: 25 Jun 2010
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Publication status: Published in Journal of Common Market Studies 49(5), September 2011: 1089-1111
Handle: RePEc:imd:wpaper:wp2010-14
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