Effects of EU Regional Policy: 1989-2013

Sascha O. Becker; Peter H. Egger; Maximilian von Ehrlich

doi:10.1016/j.regsciurbeco.2017.12.001

Effects of EU Regional Policy: 1989-2013

Sascha O. Becker, Peter H. Egger, Maximilian von Ehrlich

Research output: Contribution to journal › Article › Research › peer-review

37 Citations (Scopus)

Abstract

This paper analyzes the regional effects of EU Regional Policy during four programming periods: 1989-1993, 1994-1999, 2000-2006, 2007-2013. In particular, the focus is on the impact of transfers during the Financial and Economic Crisis and on the effects of gaining versus losing treatment status under the main Regional Policy subprogram – referred to as Objective 1 or Convergence Objective. We find that effects of Objective 1 status on growth are positive though not very long-lived: the effects of losing Objective 1 status on economic growth are negative, and the earlier positive effects on growth in the period(s) of Objective 1 treatment more or less undone. We show that the effects are weaker during the Crisis than before, in particular, on per-capita income in countries where the Crisis hit harder.

Original language	English
Pages (from-to)	143-152
Number of pages	10
Journal	Regional Science and Urban Economics
Volume	69
DOIs	https://doi.org/10.1016/j.regsciurbeco.2017.12.001
Publication status	Published - Mar 2018
Externally published	Yes

Keywords

European Union
Local average treatment effects
Regional transfers

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10.1016/j.regsciurbeco.2017.12.001Licence: CC BY

282321354-oaFinal published version, 618 KBLicence: CC BY

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Cite this

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AB - This paper analyzes the regional effects of EU Regional Policy during four programming periods: 1989-1993, 1994-1999, 2000-2006, 2007-2013. In particular, the focus is on the impact of transfers during the Financial and Economic Crisis and on the effects of gaining versus losing treatment status under the main Regional Policy subprogram – referred to as Objective 1 or Convergence Objective. We find that effects of Objective 1 status on growth are positive though not very long-lived: the effects of losing Objective 1 status on economic growth are negative, and the earlier positive effects on growth in the period(s) of Objective 1 treatment more or less undone. We show that the effects are weaker during the Crisis than before, in particular, on per-capita income in countries where the Crisis hit harder.

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