Fostering the Development of European Regions: A Spatial Dynamic Panel Data Analysis of the Impact of Cohesion Policy

Bouayad-Agha, Salima; Turpin, Nadine; Védrine, Lionel

doi:10.1080/00343404.2011.628930

Cited by 69 publications

(43 citation statements)

References 45 publications

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“…From a methodological perspective, all these papers use “generalized propensity score” (GPS) matching (Hirano & Imbens, ; Imai & Van Dijk, ), a nonparametric method to estimate treatment effects conditional on observable determinants of treatment intensity. Finally, Bouayad‐Agha, Turpin, and Védrine (), using a spatial dynamic panel data analysis, find that EUF facilitated the convergence of Ob. 1 regions to average EU income levels, while the overall effect of EUF was negligible.…”

Section: Introductionmentioning

confidence: 98%

Are we spending too much to grow? The case of Structural Funds

Cerqua

Pellegrini

2017

Journal of Regional Science

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We evaluate whether the impact of EU Structural and Cohesion Funds (EUF) on Member States’ regional economic growth depends on the intensity of treatment, measured by the normalized amount of funds distributed in each region. We use an original data set that covers all the main sources of EUF and extend the regression discontinuity design to the case of continuous treatment. The results suggest an average positive effect on regional growth. The estimated conditional intensity-growth function is concave and presents a maximum value. Therefore, the exceeding funds could have been allocated to other lagging regions without reducing the effect on growth

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Section: Introductionmentioning

confidence: 98%

Are we spending too much to grow? The case of Structural Funds

Cerqua

Pellegrini

2017

Journal of Regional Science

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“…Investment in transport infrastructure reduces transportation costs and, according to new economic geography theory [35], through this channel influences economic growth. According to [36], these forces influence the geographical concentration of economic activities and the productive advantage.…”

Section: Literature Reviewmentioning

confidence: 99%

Mediating Effects of Cohesion Policy and Institutional Quality on Convergence between EU Regions: An Examination Based on a Conditional Beta-Convergence Model with a 3-Way Multiplicative Term

2020

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The paper contributes to the existing literature on the EU's Cohesion Policy outcomes by extending the conditional beta-convergence model with a 3-way multiplicative term to examine the mediating effects of the Cohesion Policy, institutional quality, and their interaction on regional convergence. The empirical analysis based on conditional slope coefficients and conditional standard errors provides evidence that both the mediating factors under consideration contribute positively to boosting regional convergence in the EU at the NUTS 2 and 3 disaggregation level, but with much bigger success over the 2007-2013 programming period compared to the previous one. Moreover, Cohesion Policy and institutional quality act as substituting rather than complementary mediating factors.

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“…The majority of studies draw on samples of EU NUTS2 regions and employ cross‐sectional or panel data (Beugelsdijk & Eijffinger, ; Cappelen, Castellacci, Fagerberg, & Verspagen, ; Ederveen, de Groot, & Nahuis, ; Ederveen, Gorter, de Mooji, & Nahuis, ; Esposti & Bussoletti, ; Puigcerver‐Peñalver, ; Rodríguez‐Pose & Fratesi, ). More recent works have attempted to address endogeneity issues by using instrumental variable models in combination with spatial econometric techniques (Bouayad‐Agha, Turpinn, & Védrine, ; Dall'erba & Le Gallo, ; Mohl & Hagen, ; Ramajo, Marquez, Hewings, & Salinas, ). In spite of the large number of studies produced, this literature has not reached a consensus on whether Structural Fund spending is beneficial (Bahr, ; Cappelen et al., ; Becker, Egger, & von Ehrlich, ; Esposti & Bussoletti, ), beneficial under certain conditions (Becker et al., ; Bouayad‐Agha et al., ; Crescenzi & Giua, ; Mohl & Hagen, ; Rodríguez‐Pose & Fratesi, ; Rodriguez‐Pose & Garcilazo, ; ), insignificant (Dall'erba & Le Gallo, ; Garcia‐Milá & McGuire, ) or even detrimental and unjustified (Boldrin & Canova, ; Dall'erba, Guillain, & Le Gallo, ).…”

Section: Institutional Background and Overview Of The Literaturementioning

confidence: 99%

The impact of EU Objective 1 funds on regional development: Evidence from the U.K. and the prospect of Brexit

Cataldo

2017

Journal of Regional Science

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Brexit means that regions of the United Kingdom will lose access to the EU Cohesion Policy. Have EU funds been effective, and what might be the consequences of an interruption of EU financial support? This paper studies the impact of "Objective 1" funding-the highest form of EU aid-in Cornwall and South Yorkshire, two of the U.K.'s most subsidized regions. Counterfactual methodologies assessing their labor market and economic performance provide evidence of a positive effect of EU Objective 1 funds. When in 2006 South Yorkshire lost Objective 1 eligibility, this massively reduced its share of EU funds and the region was unable to sustain the gains obtained in previous years. This suggests that while Structural Funds may be effectively improving socio-economic conditions of poorer regions, the performance of subsidized areas could be deeply affected by a reduction (or worse, an interruption) of EU aid. K E Y W O R D S Brexit, EU Cohesion Policy, Objective 1, synthetic control method, U.K.

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Fostering the Development of European Regions: A Spatial Dynamic Panel Data Analysis of the Impact of Cohesion Policy

Cited by 69 publications

References 45 publications

Are we spending too much to grow? The case of Structural Funds

Are we spending too much to grow? The case of Structural Funds

Mediating Effects of Cohesion Policy and Institutional Quality on Convergence between EU Regions: An Examination Based on a Conditional Beta-Convergence Model with a 3-Way Multiplicative Term

The impact of EU Objective 1 funds on regional development: Evidence from the U.K. and the prospect of Brexit

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