Undermining the Principle of Concentration? Eu development policies and the Socio-Economic Disadvantage Of European Regions
A number of empirical analyses has found evidence that the impact of the EU structural funds on the growth performance of assisted regions is comparatively weak and has failed to promote the objective of economic and social cohesion. This literature explains this lack of convergence in terms of the policies implemented, which, from this perspective, should be considered as social (or redistributive) rather than as development policies. This paper puts forward a different explanation for the failure to deliver the expected cohesion, namely that the distribution of the funds to the regions may have been à priori distorted by either political equilibriums or inaccurate assumptions over the most cost-effective allocation of the funds. As a consequence the principle of concentration has been undermined, as, among the poorest regions in the EU there is little correlation between expenditure and socio-economic disadvantage. In order to assess this potential explanation the geographical distribution of both sources of socio-economic disadvantage and the regional allocation of structural funds are compared, by means of a Heckman two-step selection model. The results show that the sources of disadvantage are more spatially concentrated than the funds devoted to compensating such disadvantage and uncover a weak association between structural disadvantage and EU funding. Consequently, structural policies could prove helpful to promote development in the EU’s lagging regions provided that the necessary corrections are introduced in their allocation mechanism in order to increase the geographical concentration of the funds and by more adequately earmarking the available resources to the most disadvantaged regions, which the analysis indicates as having the best potential for convergence.
|Date of creation:||Mar 2007|
|Contact details of provider:|| Postal: Via Silvio d'Amico 77, - 00145 Rome Italy|
Phone: +39 06 57114612
Fax: +39 06 57114771
Web page: http://host.uniroma3.it/dipartimenti/economia/it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- P. C. Cheshire & Stefano Magrini, 2002.
"The distinctive determinants of European urban growth : does one size fit all?,"
LSE Research Online Documents on Economics
569, London School of Economics and Political Science, LSE Library.
- Cheshire, Paul C. & Magrini, Stefano, 2002. "The distinctive determinants of European urban growth: Does one size fit all?," ERSA conference papers ersa02p100, European Regional Science Association.
- Rodriguez-Pose, Andres, 2002. "The European Union: Economy, Society, and Polity," OUP Catalogue, Oxford University Press, number 9780198742869, December.
- Canova, Fabio, 2001.
"Testing for convergence clubs in income per-capita : a predictive density approach,"
HWWA Discussion Papers
139, Hamburg Institute of International Economics (HWWA).
- Fabio Canova, 2004. "Testing for Convergence Clubs in Income Per Capita: A Predictive Density Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(1), pages 49-77, 02.
- Fabio Canova, 1997. "Testing for convergence clubs in income per-capita: A predictive density approach," Economics Working Papers 404, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
- Canova, Fabio, 1999. "Testing for Convergence Clubs in Income per-capita: A Predictive Density Approach," CEPR Discussion Papers 2201, C.E.P.R. Discussion Papers.
- Philippe Martin, 1999. "Are European regional policies delivering?," Sciences Po publications info:hdl:2441/9343, Sciences Po.
- Philippe Martin, 1998. "Can Regional Policies Affect Growth and Geography in Europe?," The World Economy, Wiley Blackwell, vol. 21(6), pages 757-774, 08.
- Puga, Diego, 2001.
"European Regional Policies in Light of Recent Location Theories,"
CEPR Discussion Papers
2767, C.E.P.R. Discussion Papers.
- Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
- 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.
- Rodriguez-Pose, Andres, 1998. "Dynamics of Regional Growth in Europe: Social and Political Factors," OUP Catalogue, Oxford University Press, number 9780198233831, December.
When requesting a correction, please mention this item's handle: RePEc:rtr:wpaper:0073. 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: (Telephone for information)
If references are entirely missing, you can add them using this form.