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Going NUTS : the effect of EU structural funds on regional performance

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Becker, Sascha O., Egger, Peter, 1969- and Ehrlich, Maximilian von. (2010) Going NUTS : the effect of EU structural funds on regional performance. Journal of Public Economics, Vol.94 (No.9-10). pp. 578-590. ISSN 00472727

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Official URL: http://dx.doi.org/10.1016/j.jpubeco.2010.06.006

Abstract

The European Union (EU) provides grants to disadvantaged regions of member states to allow them to catch up with the EU average. Under the Objective 1 scheme, NUTS2 regions with a per capita GDP level below 75% of the EU average qualify for structural funds transfers from the central EU budget. This rule gives rise to a regression-discontinuity design that exploits the discrete jump in the probability of EU transfer receipt at the 75% threshold for identification of causal effects of Objective 1 treatment on outcome such as economic growth of EU regions. We find positive per capita GDP growth effects of Objective 1 transfers, but no employment growth effects.

Item Type: Journal Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Economic development projects -- European Union countries, European Union -- Economic aspects, Regional planning -- European Union countries, Economic assistance, European, Community development -- European Union countries, Economic development -- European Union countries, Structural adjustment (Economic policy) -- European Union countries
Journal or Publication Title: Journal of Public Economics
Publisher: Elsevier BV, North-Holland
ISSN: 00472727
Date: October 2010
Volume: Vol.94
Number: No.9-10
Page Range: pp. 578-590
Identification Number: 10.1016/j.jpubeco.2010.06.006
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access
Funder: Deutsche Forschungsgemeinschaft (DFG), Fonds zur Förderung der Wissenschaftlichen Forschung (Austria) (FWF)
Grant number: P17713-G05 (FWF)
URI: http://wrap.warwick.ac.uk/id/eprint/37580

Data sourced from Thomson Reuters' Web of Knowledge

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