IDEAS home Printed from https://ideas.repec.org/p/rtr/wpaper/0197.html
   My bibliography  Save this paper

Spatial Discontinuity for the Impact Assessment of the EU Regional Policy. The Case of Italian Objective 1 Regions

Author

Listed:
  • Mara Giua

Abstract

The capacity of the Regional Policy of the European Union (EU) to reduce the gap between the core and the periphery of the Union is still controversial. This paper revisits the question by exploiting treatment effect methods with a spatial approach never previ ously applied to the analysis of this policy. The spatial discontinuity represented by the administrative boundaries between‘Objective 1’ and ‘non-Objective 1’ regions makes it possible to estimate the causal impact of the EU Regional Policy on Italian ‘Objective 1’ regions where the EU has addressed a large amount of resources over the past decades. By focusing on the sub-sample of municipalities contiguous to the ‘policy-change boundary ’and by matching them according to the segment of the boundary of which they belong, the ‘Spatial RDD' model shows that the EU Regional Policy produced a positive impact on employment levels. The positive impact is concentrated in a specific set of economic sectors directly relevant to the policy action. In addition, there is no evidence of any displacement of resources away from other non-treated regions.

Suggested Citation

  • Mara Giua, 2014. "Spatial Discontinuity for the Impact Assessment of the EU Regional Policy. The Case of Italian Objective 1 Regions," Departmental Working Papers of Economics - University 'Roma Tre' 0197, Department of Economics - University Roma Tre.
  • Handle: RePEc:rtr:wpaper:0197
    as

    Download full text from publisher

    File URL: http://dipeco.uniroma3.it/db/docs/WP%20197%281%29.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Sascha O. Becker & Peter H. Egger & Maximilian von Ehrlich, 2013. "Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects," American Economic Journal: Economic Policy, American Economic Association, vol. 5(4), pages 29-77, November.
    2. Andres RodrIguez-Pose & Ugo Fratesi†, 2004. "Between Development and Social Policies: The Impact of European Structural Funds in Objective 1 Regions," Regional Studies, Taylor & Francis Journals, vol. 38(1), pages 97-113.
    3. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 577-599.
    4. Jofre-Monseny, Jordi, 2014. "The effects of unemployment protection on migration in lagging regions," Journal of Urban Economics, Elsevier, vol. 83(C), pages 73-86.
    5. Teresa Garcia-Milà & Therese McGuire, 2001. "Do Interregional Transfers Improve the Economic Performance of Poor Regions? The Case of Spain," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(3), pages 281-296, May.
    6. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    7. repec:spr:portec:v:1:y:2002:i:2:d:10.1007_s10258-002-0010-3 is not listed on IDEAS
    8. Gibbons, Stephen & Machin, Stephen & Silva, Olmo, 2013. "Valuing school quality using boundary discontinuities," Journal of Urban Economics, Elsevier, vol. 75(C), pages 15-28.
    9. Daniele Bondonio & Robert T. Greenbaum, 2003. "A comparative evaluation of spacially targeted economic revitalization programs in the European Union and the United States," ICER Working Papers 03-2003, ICER - International Centre for Economic Research.
    10. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    11. Sjed Ederveen & Joeri Gorter & Ruud de Mooij & Richard Nahuis, 2003. "Funds and Games: The Economics of European Cohesion Policy," Occasional Papers 03, European Network of Economic Policy Research Institutes.
    12. Mari Carmen Puigcerver-Penalver, 2007. "The Impact of Structural Funds Policy on European Regions' Growth : A Theoretical and Empirical Approach," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 179-208, September.
    13. 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," Kyklos, Wiley Blackwell, vol. 59(1), pages 17-42, February.
    14. Roberto Esposti & Stefania Bussoletti, 2008. "Impact of Objective 1 Funds on Regional Growth Convergence in the European Union: A Panel-data Approach," Regional Studies, Taylor & Francis Journals, vol. 42(2), pages 159-173.
    15. Henry Overman & Elias Einio, 2012. "The Effects of Spatially Targeted Enterprise Initiatives: Evidence from UK LEGI," ERSA conference papers ersa12p164, European Regional Science Association.
    16. Monica Andini & Guido de Blasio, 2012. "Local Development that Money Can’t Buy: Italy’s Contratti di Programma," ERSA conference papers ersa12p464, European Regional Science Association.
    17. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.
    18. Freedman, Matthew, 2015. "Place-based programs and the geographic dispersion of employment," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 1-19.
    19. Tobias Hagen & Philipp Mohl, 2011. "Econometric Evaluation of EU Cohesion Policy: A Survey," Chapters,in: International Handbook on the Economics of Integration, Volume III, chapter 16 Edward Elgar Publishing.
    20. Giacomelli, Silvia & Menon, Carlo, 2012. "Firm size and judicial efficiency in Italy: evidence from the neighbour's tribunal," LSE Research Online Documents on Economics 58339, London School of Economics and Political Science, LSE Library.
    21. S. Bouayad Agha & Nadine Turpin & Lionel Védrine, 2010. "Fostering the potential endogenous development of European regions: a spatial dynamic panel data analysis of the Cohesion Policy on regional convergence over the period 1980-2005," Working Papers halshs-00812077, HAL.
    22. Becker, Sascha O. & Egger, Peter H. & von Ehrlich, Maximilian, 2010. "Going NUTS: The effect of EU Structural Funds on regional performance," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 578-590, October.
    23. Busillo & Teo Muccigrosso & Guido Pellegrini & Ornella Tarola & Terribile, 2010. "Measuring the Impact of the European Regional Policy on Economic Growth: a Regression Discontinuity Design Approach," Working Papers 6/10, Sapienza University of Rome, DISS.
    24. Cappelen, A. & Fagerberg, J. & Verspagen, B., 2001. "The Impact of Regional Support on Growth and Convergence in the European Union," Working Papers 01.14, Eindhoven Center for Innovation Studies.
    25. 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.
    26. Battistin, Erich & Rettore, Enrico, 2008. "Ineligibles and eligible non-participants as a double comparison group in regression-discontinuity designs," Journal of Econometrics, Elsevier, vol. 142(2), pages 715-730, February.
    27. Raffaello Bronzini & Guido de Blasio, 2006. "The effect of investment incentives: an assessment of Law 488/1992," Temi di discussione (Economic working papers) 582, Bank of Italy, Economic Research and International Relations Area.
    28. Thomas J. Holmes, 1998. "The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 667-705, August.
    29. Sandy DALL’ERBA & Rachel GUILLAIN & Julie LE GALLO, 2009. "Impact Of Structural Funds On Regional Growth: How To Reconsider A 9 Year-Old Black Box," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 30, pages 77-100.
    30. Accetturo, Antonio & de Blasio, Guido & Ricci, Lorenzo, 2014. "A tale of an unwanted outcome: Transfers and local endowments of trust and cooperation," Journal of Economic Behavior & Organization, Elsevier, vol. 102(C), pages 74-89.
    31. Ramajo, Julián & Márquez, Miguel A. & Hewings, Geoffrey J.D. & Salinas, María M., 2008. "Spatial heterogeneity and interregional spillovers in the European Union: Do cohesion policies encourage convergence across regions?," European Economic Review, Elsevier, vol. 52(3), pages 551-567, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Riccardo Crescenzi & Mara Giua, 2018. "One or Many Cohesion Policies of the European Union? On the Diverging Impacts of Cohesion Policy across Member States," SERC Discussion Papers 0230, Spatial Economics Research Centre, LSE.
    2. repec:gam:jsusta:v:11:y:2019:i:7:p:2158-:d:221779 is not listed on IDEAS
    3. Barone, Guglielmo & David, Francesco & de Blasio, Guido, 2016. "Boulevard of broken dreams. The end of EU funding (1997: Abruzzi, Italy)," Regional Science and Urban Economics, Elsevier, vol. 60(C), pages 31-38.
    4. Emanuele Ciani & Guido de Blasio, 2015. "European structural funds during the crisis: evidence from Southern Italy," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-31, December.
    5. Marco Di Cataldo, 2015. "The long-term impact of Objective 1 funding on unemployment and labour market disparities: Evidence from the UK," ERSA conference papers ersa15p104, European Regional Science Association.
    6. repec:bla:jregsc:v:58:y:2018:i:2:p:386-423 is not listed on IDEAS
    7. Davide Fiaschi & Andrea Mario Lavezzi & Angela Parenti, 2018. "Does EU cohesion policy work? Theory and evidence," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 386-423, March.
    8. repec:gam:jsusta:v:11:y:2019:i:4:p:1105-:d:207509 is not listed on IDEAS
    9. Zoltán Bakucs & Imre Fertő & Zsófia Benedek, 2019. "Success or Waste of Taxpayer Money? Impact Assessment of Rural Development Programs in Hungary," Sustainability, MDPI, Open Access Journal, vol. 11(7), pages 1-23, April.
    10. Guglielmo Barone & Francesco David & Guido de Blasio, 2016. "Boulevard of broken dreams. The end of the EU funding (1997: Abruzzi, Italy)," Temi di discussione (Economic working papers) 1071, Bank of Italy, Economic Research and International Relations Area.
    11. Giuseppe Albanese & Emanuele Ciani & Guido de Blasio, 2019. "Anything new in town? The local effects of Urban Regeneration Policies in Italy," Temi di discussione (Economic working papers) 1214, Bank of Italy, Economic Research and International Relations Area.
    12. Marco Di Cataldo, 2016. "Gaining and losing EU Objective 1 funds: Regional development in Britain and the prospect of Brexit," LEQS – LSE 'Europe in Question' Discussion Paper Series 120, European Institute, LSE.

    More about this item

    Keywords

    Regional Policy of the European Union; treatment effect methods; policy evaluation; regions; European Union; RDD;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rtr:wpaper:0197. 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). General contact details of provider: http://edirc.repec.org/data/dero3it.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.