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Regional Convergence And The Impact Of European Structural Funds Over 1989-1999: A Spatial Econometric Analysis

  • Sandy Dall'erba

    (REAL)

  • Julie Le Gallo

    (IERSO)

This paper estimates the impact of structural funds on the convergence process between 145 European regions over 1989-1999. Since the majority of these funds finance transportation infrastructures, they induce spillover effects, industry relocation and do not necessarily succeed in reducing regional inequalities. To estimate their impact, including spillover effects, we first apply spatial econometrics on a conditional beta-convergence model; second, we simulate their impact on the targeted region and then on all the other regions. The results show that structural funds have positively benefited to the targeted regions’ growth, but that spillover effects are very small in peripheral regions.

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File URL: http://econwpa.repec.org/eps/urb/papers/0310/0310005.pdf
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Paper provided by EconWPA in its series Urban/Regional with number 0310005.

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Date of creation: 07 Oct 2003
Date of revision: 12 Feb 2004
Handle: RePEc:wpa:wuwpur:0310005
Note: Type of Document -
Contact details of provider: Web page: http://econwpa.repec.org

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  1. 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.
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