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Econometric evaluation of EU Cohesion Policy: a survey

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  • Hagen, Tobias
  • Mohl, Philipp

Abstract

More than one third of the European Union's total budget is spent on socalled Cohesion Policy via the structural funds. Its main purpose is to promote the development of the EU and to support convergence between the levels of development of the various European regions. Investigating the impact of European Cohesion Policy on economic growth and convergence is a wide research topic in applied econometric research. Nevertheless, the empirical evidence has provided mixed, if not contradictory, results. Against this background, the aim of this chapter is to provide a fundamental review on this topic. Taking fundamental methodological issues into account, we review the existing econometric evaluation studies, draw several conclusions and provide some remarks for future research.

Suggested Citation

  • Hagen, Tobias & Mohl, Philipp, 2009. "Econometric evaluation of EU Cohesion Policy: a survey," ZEW Discussion Papers 09-052, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:09052
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    Cited by:

    1. Julia Bachtrögler & Christoph Hammer & Wolf Heinrich Reuter & Florian Schwendinger, 2017. "Spotlight on the beneficiaries of EU regional funds: A new firm-level dataset," Department of Economics Working Papers wuwp246, Vienna University of Economics and Business, Department of Economics.
    2. bouayad-agha-Hamouche, salima & turpin, nadine & védrine, lionel, 2012. "Fostering the potential endogenous development of European regions: a spatial dynamic panel data analysis of the Cohesion Policy," MPRA Paper 65470, University Library of Munich, Germany.
    3. Peter Schmidt, 2014. "EU regional policy and its theoretical foundations revisited," ERSA conference papers ersa14p1560, European Regional Science Association.
    4. Salima BOUAYAD AGHA & Nadine TURPIN & Lionel VEDRINE, 2013. "Au-Delà De La Moyenne : Les Effets Par Quantile De La Politique De Cohésion De L’Union Européenne," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 27-48.
    5. 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.
    6. Julia Bachtrögler, 2016. "On the effectiveness of EU structural funds during the Great Recession: Estimates from a heterogeneous local average treatment effects framework," Department of Economics Working Papers wuwp230, Vienna University of Economics and Business, Department of Economics.
    7. Bachtrögler, Julia & Hammer, Christoph & Reuter, Wolf Heinrich & Schwendinger, Florian, 2017. "Spotlight on the beneficiaries of EU regional funds: A new firm-level dataset," Working Papers 02/2017, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    8. Breidenbach, Philipp & Mitze, Timo & Schmidt, Christoph M., 2016. "EU structural funds and regional income convergence: A sobering experience," Ruhr Economic Papers 608, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Mohl, Philipp & Hagen, Tobias, 2011. "Do EU structural funds promote regional employment? Evidence from dynamic panel data models," Working Paper Series 1403, European Central Bank.
    10. Bachtrögler, Julia, 2016. "On the effectiveness of EU structural funds during the Great Recession: Estimates from a heterogeneous local average treatment effects framework," Department of Economics Working Paper Series 5157, WU Vienna University of Economics and Business.
    11. Krieger-Boden, Christiane, 2016. "EU cohesion policy, past and present: Sustaining a prospering and fair European Union?," Kiel Working Papers 2037, Kiel Institute for the World Economy (IfW).
    12. Attila Varga, 2014. "Challenges in modeling the impacts of modern development policies: The case of the GMR-approach," EcoMod2014 7151, EcoMod.
    13. Fürst, Dietrich & Hirschfeld, Markus & Jung, Hans-Ulrich & Lammers, Konrad & Nischwitz, Guido & Salow, Sven-Olaf & Sempell, Guido & Skubowius, Alexander, 2012. "Ausgestaltung der EU-Strukturpolitik der Förderperiode 2007 - 2013 in den nordwestdeutschen Bundesländern," Arbeitsmaterial der ARL, Akademie für Raumforschung und Landesplanung (ARL) - Leibniz-Forum für Raumwissenschaften, volume 127, number 358, April.
    14. Peter Schmidt, 2013. "The EU structural funds as a means to hamper migration," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 33(1), pages 73-99, February.
    15. Roman, Monica & Gotiu (Lucaciu), Liliana, 2017. "Non-parametric methods applied in the efficiency analysis of European structural funding in Romania," MPRA Paper 80548, University Library of Munich, Germany, revised 08 May 2017.

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    Keywords

    Economic integration; regional growth; EU Cohesion Policy; panel data; spatial econometrics;

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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