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Regional Policy and rent-seeking

Author

Listed:
  • Kjetil Bjorvatn

  • Nicola Daniele Coniglio

Abstract

The most important policy instrument to promote regional development in the European Union is Strucutral Funds, covering approximately a third of the EU budget. An empirical analysis demonstrates that these funds have on average been ineffective in speeding up the process of convergence with in the European Union. Only in countries with sufficiently good institutions have these funds contributed positively to regional development. Our analysis attempts to shed light on how investment subsidies may create industrialization, and more importantly, how poor quality institutions may prevent this strategy from succeeding. JEL codes: Keywords: Regional policy, rent seeking, industrialization

Suggested Citation

  • Kjetil Bjorvatn & Nicola Daniele Coniglio, 2004. "Regional Policy and rent-seeking," ERSA conference papers ersa04p162, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa04p162
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    References listed on IDEAS

    as
    1. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    2. Sjef Ederveen & Henri L.F. de 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.
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