The effect of business support on employment in manufacturing: evidence from the EU structural funds in Germany, Italy, and Spain
This study investigates whether a relationship exists between European Cohesion Policy support to business activities and the growth of employment. We exploit cross-industry cross-region variations for a sample of 14 manufacturing industries and 70 European regions (belonging to Germany, Spain, and Italy), and take advantage of detailed EU Structural and Cohesion Funds data available at the regional level for the period 2000-2006. We show that there are differential effects of business support on industries with different initial size as well as with different growth opportunities. The results imply that the European Cohesion Policy’s direct support to businesses might contribute to the process of reallocation of persons employed across industries. Since estimated effects at the aggregate level might conceal large differences across industries, by disentangling the effects across industries we can improve our understanding of how the Structural Funds support can impact industrial and regional development and adjustment paths.
|Date of creation:||05 Nov 2009|
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- Sjef Ederveen & Henri L . F. Groot & Richard Nahuis, 2006.
"Fertile Soil for Structural Funds?A Panel Data Analysis of the Conditional Effectiveness of European Cohesion Policy,"
Wiley Blackwell, vol. 59(1), pages 17-42, 02.
- Sjef Ederveen & Henri de Groot & Richard Nahuis, 2002. "Fertile soil for structural funds? A panel data analysis of the conditional effectiveness of European cohesion policy," CPB Discussion Paper 10, CPB Netherlands Bureau for Economic Policy Analysis.
- S. Ederveen & H.L.F. de Groot & R. Nahuis, 2003. "Fertile Soil for Structural Funds? A panel data analysis of the conditional effectiveness of European cohesion policy," Working Papers 03-14, Utrecht School of Economics.
- Raymond Fisman & Inessa Love, 2004. "Financial Development and Intersectoral Allocation: A New Approach," Journal of Finance, American Finance Association, vol. 59(6), pages 2785-2807, December.
- Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR;CES;MSH, vol. 16(32), pages 205-253, 04.
- Aadne Cappelen & Fulvio Castellacci & Jan Fagerberg & Bart Verspagen, 2003. "The Impact of EU Regional Support on Growth and Convergence in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 41, pages 621-644, September.
- Maaike Beugelsdijk & Sylvester C.W. Eijffinger, 2005. "The Effectiveness of Structural Policy in the European Union: An Empirical Analysis for the EU-15 in 1995-2001," Journal of Common Market Studies, Wiley Blackwell, vol. 43(1), pages 37-51, March.
- Beugelsdijk, S. & Eijffinger, S.C.W., 2005. "The effectiveness of structural policy in the European Union : An empirical analysis for the EU-15 in 1995-2001," Other publications TiSEM c3ca201b-f33b-4ce0-a1f2-a, Tilburg University, School of Economics and Management.
- Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 321-359, October.
- Alfredo M. Pereira & Jorge M. Andraz, 2005. "Public Investment in Transportation Infrastructure and Economic Performance in Portugal," Review of Development Economics, Wiley Blackwell, vol. 9(2), pages 177-196, May. Full references (including those not matched with items on IDEAS)
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