Determinants of Intra‐Distribution Dynamics in European Regions: An Empirical Assessment of the Role of Structural Intervention

Abstract

This paper examines the dynamic of income distribution in European regions and attempts to relate movements within this distribution to regional structural characteristics and to the impact of cohesion policy (CP). There is evidence that CP supports advanced economic development in lagging and peripheral regions, hence contributing to the 'convergence objective'. The effectiveness of CP, however, depends on the manner in which funds are managed by single regions: the likelihood of progressing in the income distribution is associated, in fact, to the balance between investments in infrastructure and the productive environment, favouring the former. Evidence presented in this paper also relates regional economic performance to the educational level and innovation in regions, providing useful insights for the current debate about reshaping EU cohesion policy toward a more placebased approach.

EU regional convergence in the agricultural sector: Are there synergies between agricultural and regional policies?

“…Attempts to empirically measure convergence among EU regions fall into two broad categories of studies based on the statistical approach: growth regression and transition probabilities (Ederveen, De Groot, & Nahuis, 2006; Fingleton, 1999; Le Gallo, 2004). Both frameworks allow for testing the effect of the policies interventions at the regional level (Fabrizi, Guastella, Marta, & Timpano, 2016). The studies that test the regional convergence of per capita income or labour productivity in Europe generally confirm the prediction of convergence, finding higher growth rates in the least developed regions (Fiaschi, Lavezzi, & Parenti, 2018; Guastella & Timpano, 2016; Pellegrini, Terribile, Tarola, Muccigrosso, & Busillo, 2013).…”

“…Previous studies have shown that the effect of the Cohesion Policy on regional growth depends on the level of regional development (Crespo‐Cuaresma, Foster, & Stehrer, 2011; Crescenzi & Giua, 2016; Fabrizi et al, 2016) and, thus, the synergies or conflicts between different policies may depend on it as well. Looking specifically at the convergence of the agricultural productivity, our hypothesis is that the joint effects of CAP and the CP may depend on the initial level of regional agricultural productivity.…”