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Too much of a good thing? On the growth effects of the EU's regional policy
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Becker, Sascha O., Egger, Peter and Ehrlich, Maximilian von (2012) Too much of a good thing? On the growth effects of the EU's regional policy. Working Paper. Coventry, UK: Department of Economics, University of Warwick. CAGE Online Working Paper Series, Volume 2012 (Number 70).
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Text (Working paper)
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Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
Abstract
The European Union (EU) provides grants to disadvantaged regions of member
states from two pools, the Structural Funds and the Cohesion Fund. The
main goal of the associated transfers is to facilitate convergence of poor regions
(in terms of per-capita income) to the EU average. We use data at the
NUTS3 level from the last two EU budgetary periods (1994-99 and 2000-06)
and generalized propensity score estimation to analyze to which extent the
goal of fostering growth in the target regions was achieved with the funds provided
and whether or not more transfers generated stronger growth e ects.
We nd that, overall, EU transfers enable faster growth in the recipient regions
as intended, but we estimate that in 36% of the recipient regions the
transfer intensity exceeds the aggregate e ciency maximizing level and in 18%
of the regions a reduction of transfers would not even reduce their growth.
We conclude that some reallocation of the funds across target regions would
lead to higher aggregate growth in the EU and could generate even faster
convergence than the current scheme does.
Item Type: | Working or Discussion Paper (Working Paper) | ||||
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Subjects: | H Social Sciences > HB Economic Theory | ||||
Divisions: | Faculty of Social Sciences > Economics | ||||
Library of Congress Subject Headings (LCSH): | Economic assistance, European , European Union -- Membership, European Union countries -- Economic assistance, Economic policy | ||||
Series Name: | CAGE Online Working Paper Series | ||||
Publisher: | Department of Economics, University of Warwick | ||||
Place of Publication: | Coventry, UK | ||||
Official Date: | 2012 | ||||
Dates: |
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Volume: | Volume 2012 | ||||
Number: | Number 70 | ||||
Number of Pages: | 40 | ||||
Institution: | University of Warwick | ||||
Status: | Not Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Open Access (Creative Commons) | ||||
Date of first compliant deposit: | 1 August 2016 | ||||
Date of first compliant Open Access: | 1 August 2016 | ||||
Funder: | Scottish Institute for Research in Economics (SIRE), Deutsche Forschungsgemeinschaft (DFG) | ||||
Version or Related Resource: | Becker, Sascha O., et al. (2012). Too much of a good thing? On the growth effects of the EU's regional policy. European Economic Review, 56(4), pp. 648-668. http://wrap.warwick.ac.uk/id/eprint/45514 Becker, Sascha O., et al. (2010). Too much of a good thing? On the growth effects of the EU's regional policy. Coventry : Centre for Economic Policy Research. (CEPR Discussion Paper no.8043). http://wrap.warwick.ac.uk/id/eprint/45515 | ||||
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