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A helping hand, but not a lift. EU Cohesion Policy and regional development

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  • Dettmann, Eva
  • Fritz, Sarah

Abstract

This study provides new evidence on the impact of the EU Cohesion Policy on income growth in less developed regions. Our panel includes data from all European regions for the years 1989-2020. Using a fuzzy Regression Discontinuity Design, we model treatment dynamics by applying a random effects estimator. Based on digitized historical data, we precisely replicate the policy rule and correctly classify the regions' eligibility status. Results show that the policy has a moderate positive effect on GDP per capita growth in the targeted regions.

Suggested Citation

  • Dettmann, Eva & Fritz, Sarah, 2025. "A helping hand, but not a lift. EU Cohesion Policy and regional development," IWH Discussion Papers 18/2025, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:330917
    DOI: 10.18717/k8bw-5d69
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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