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|
|Contact details of provider:|| Postal: Via Conservatorio 7, I-20122 Milan - Italy|
Phone: +39 02 50321522
Fax: +39 02 50321505
Web page: http://www.demm.unimi.it
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:mil:wpdepa:2009-33. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (DEMM Working Papers)
If references are entirely missing, you can add them using this form.