Relationship between Structural Funds and Economic Indicators of the European Union

Abstract

Economic and social cohesion is one of the economic objectives of the European Union (EU). Therefore it is important to analyse the influence of the European Union policies on the cohesion. The common market itself is not able to solve the economic and social problems that are relevant for the EU countries. The EU structural funds should encourage the employment and development of the region. The cohesion policy provides the possibility to finance various activities in order to promote economic growth in the European Union Member States. The convergence, regional competitiveness, employment and European territorial cooperation are the three main objectives of the current EU development aims. The cohesion policy can be helpful instrument for achieving economic convergence. The EU investments are meant to support the innovations as well as education and training in urban and rural areas, create sustainable high-quality jobs in order to reduce the unemployment and pursue low-carbon economy. In summary, the funds should lead to economic growth. This article presents the analysis of the relationship between the structural support and economic indicators of the EU. The research methods used in the article include the analysis of literature and statistical data, and correlation analysis. The analysis showed that correlation between main economic indicators and the funds is not significant and it may show the insufficient use of the support.

The Efficiency of Financing the Regional Smart-Specialization Strategies’ Implementation from the EU Structural Funds

“…Examining the role of the EU cohesion policy in the socio-economic development of Italian regions, Aiello & Pupo (2012) conclude that structural funds have a positive impact only on certain regions of the country, failing to solve the problems of regional differentiation. (Aiello & Pupo, 2012) Similar conclusions were made by Startiene, Dumciuviene & Stundziene (2015). Based on the correlation analysis of the relevant statistical data, the researchers emphasize the insignificant impact of financial support provided by the EU structural funds on the economic development of the EU regions.…”

A Review of the European Structural and Investment Funds in Health

“…The authors confirm the importance of observing the effects of investments in the different sectors of investments. Startiene, Dumciuviene and Stundziene (2015) present the analysis of the relationship between the structural support and chosen economic indicators of the EU (e.g. final consumption expenditure, total intramural research and development expenditure, labour productivity, unemployment and GDP of the whole EU) and do not find a significant correlation, which opens up the question on the efficiency of the use of the funds across countries and confirms differences in results regarding the context of the analysis of the ESIF investments.…”

The Dynamics of Fund Absorption: Evaluating the Efficacy of EU Structural Funds in Mitigating Regional Inequalities—Calabrian Case

“…These funds, although distinct in objectives and sectors, form an integrated financial system that bolsters economic activities in their respective regions. They enhance both tangible and intangible infrastructures, thus promoting human capital development and investment (Biedka et al 2022;Startiene et al 2015). The evolving perception of their efficacy in meeting Cohesion Policy goals reflects society's dynamic nature.…”

“…The scientific literature indicates a positive correlation between Structural Funds and regional development, with direct ties between EU funds and foreign investment (Caldas et al 2018;Startiene et al 2015) and long-term competitiveness (Tijanić and Obadic 2015). Nonetheless, factors such as high fiscal decentralization (Tosun 2014), adverse regional traits like corruption or poor governance, and inefficient administrative capacity can hinder these funds' impact.…”