The Effectiveness of Objective 1 Structural Funds in the EU 15: New Empirical Evidence from NUTS 3 Regions
Based on a sample of 1,084 European regions (EU 15) over the period of 1995–2004, we estimate the determinants of regional growth of GDP per capita, allowing for both spatial lag and spatial error dependence. We find that robust LM tests cannot reject the null hypothesis of no spatial dependence when country dummy variables are included in the growth equation. OLS and robust regression methods show that population density and industry share are significantly and positively related to economic growth. Regions that received EU structural funds have a significantly higher growth of GDP per capita, but the effect is only marginally significant. Blinder-Oaxaca decompositions reveal that the growth differential between Objective 1 regions and the remaining regions is solely due to the difference in the characteristics and not to differences in the coefficients. Finally, we find that the added value gained in Objective 1 regions is much lower than the resources that have been allocated to them.
|Date of creation:||20 Feb 2008|
|Date of revision:|
|Contact details of provider:|| Postal: Arsenal Object 20, A-1030 Wien|
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/
More information through EDIRC
References listed on IDEAS
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.:
- Jan Fagerberg & Bart Verspagen, 1996. "Heading for Divergence? Regional Growth in Europe Reconsidered," Journal of Common Market Studies, Wiley Blackwell, vol. 34(3), pages 431-448, 09.
- Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
- 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,"
03-14, Utrecht School of Economics.
- 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, 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.
- Enrique López-Bazo & Esther Vayá & Manuel Artís, 2004. "Regional Externalities And Growth: Evidence From European Regions," Journal of Regional Science, Wiley Blackwell, vol. 44(1), pages 43-73.
- Attfield, C. L. F. & Cannon, Edmund S. & Demery, D. & Duck, Nigel W., 2000. "Economic growth and geographic proximity," Economics Letters, Elsevier, vol. 68(1), pages 109-112, July.
- Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
- Monchuk, Daniel C. & Miranowski, John & Hayes, Dermot J. & Babcock, Bruce A., 2005.
"Analysis of Regional Economic Growth in the U.S. Midwest (An),"
Staff General Research Papers Archive
12294, Iowa State University, Department of Economics.
- Daniel C. Monchuk & John A. Miranowski & Dermot J. Hayes & Bruce A. Babcock, 2007. "An Analysis of Regional Economic Growth in the U.S. Midwest," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(1), pages 17-39.
- Daniel C. Monchuk & John Miranowski & Dermot J. Hayes & Bruce A. Babcock, 2005. "Analysis of Regional Economic Growth in the U.S. Midwest, An," Center for Agricultural and Rural Development (CARD) Publications 05-wp392, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Monchuk, Daniel C. & Miranowski, John A. & Hayes, Dermot J. & Babcock, Bruce A., 2004. "An Analysis Of Regional Economic Growth In The Us Midwest," 2004 Annual meeting, August 1-4, Denver, CO 20369, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Deller, Steven C. & Gould, Brian W. & Jones, Bruce L., 2003.
"Agriculture and Rural Economic Growth,"
Journal of Agricultural and Applied Economics,
Southern Agricultural Economics Association, vol. 35(03), December.
- Roberto Esposti, 2007. "Regional Growth and Policies in the European Union: Does the Common Agricultural Policy Have a Counter-Treatment Effect?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 116-134.
- Ben Gardiner & Ron Martin & Tyler Peter, 2004. "Competitiveness, Productivity and Economic Growth across the European Regions," ERSA conference papers ersa04p333, European Regional Science Association.
- 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, 09.
- Andrés Rodríguez-Pose & Ugo Fratesi, 2003.
"Between development and social policies: the impact of European Structural Funds in Objective 1 Regions,"
European Economy Group Working Papers
28, European Economy Group.
- 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.
When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2008:i:310. 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: (Ilse Schulz)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.