Impact of European Structural and Investment Funds Absorption on the Regional Development in the EU-12 (New Member States)

• Autorzy: Martina Vukašina , Ines Kersan-Škabić , Edvard Orlić
• Języki publikacji: EN

Abstrakty

EN

Research background: European Structural and Investment Funds (ESIF) as the main instruments of cohesion policy (CP) in the EU, provide a broad source of financing opportunities for the EU member states. The biggest amount in the CP budget is oriented to convergence NUTS 2 regions that have GDP p.c. below 75% of the EU average. The new members of the EU (accessed in 2004 and 2007) had available 176.3 billion EUR in the period 2007-2013 and 217 billion EUR in the period 2014-2020. Even the absorption rate (in 2007-2013) of available ESIFs is high (above 90%), the real implications on their economies don't come automatically and they represent the area for examination.
Purpose of the article: The research aims to analyse the impact of ESIFs absorption in EU new member states in the period 2008-2016 on their GDP p.c.
Methods: As the sample has time and cross-sectional dimension, the panel data in static and dynamic form is employed. The analysis covers the major part of the financial framework 2007-2013 and a part of financial perspective 2014-2020 (depending on the available data).
Findings & value added: The results indicate that increase in ESIF p.c. for 1% will contribute to the GDP p.c. increase for 0.0053 to 0.0064 % (static model) and for 0.008% (dynamic model). Although the impact of ESIFs is significant and positive, it is quite (and unexpectedly) small, and consequently new EU member states should not rely too much on them as the source of economic progress. It is necessary that countries should focus on channeling funds into specific segments (sectors, policies) that will result in increased competitiveness of their economies. The contributions lie in creating GDP p.c. determination function; in including all new EU member states; in including more recent available data and by observing ESIFs as a part of growth model. (original abstract)

Słowa kluczowe

EN

Regional development; Panel data; Structural funds; Investment funds

PL

Rozwój regionalny; Dane panelowe; Fundusze strukturalne; Fundusze inwestycyjne

• Czasopismo: Equilibrium
• Rocznik: 2022
• Tom: 17
• Numer: nr 4
• Strony: 857--880

Twórcy

autor

Martina Vukašina

• Zadar County Development Agency ZADRA NOVA, Croatia

autor

Ines Kersan-Škabić

• Juraj Dobrila University of Pula, Croatia

autor

Edvard Orlić

• Sarajevo School of Science and Technology, Bosnia and Herzegovina

Bibliografia

• Abreu, M., de Groot, H., & Florax, R. (2005). Space and growth: a survey of empirical evidence and methods. Region et Developpement, 21(21), 12-43. doi: 10.2139/ssrn.631007.
• Acemoglu, D. (2009). Introduction to modern economic growth. Princeton: Princeton University Press.
• Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58(2), 277-297. doi: 10.2307/2297968.
• Aschauer, D. A. (1989). Is public infrastructure productive? Journal of Monetary Economics, 23, 177-200. doi: 10.1016/0304-3932(89)90047-0.
• Bachtler, J., & Gorzelak, G. (2007). Reforming EU cohesion policy: a reappraisal of the performance of the structural funds. Policy Studies, 28(4), 309-326. doi: 10.1080/01442870701640682.
• Bachtler, J., & Wren, C. (2006). Evaluation of European Union cohesion policy: research questions and policy challenges. Regional Studies, 40(2), 143-153. doi: 10.1080/00343400600600454.
• Badoiu, C. M. (2018). The impact of structural funds on real convergence in Eastern Europe. In 32nd conference of the International-Business-Information-Management-Association (IBIMA). Seville, Spain, Nov 15-16, 2018, Vision 2020: sustainable economic development and application of innovation management (pp. 7922 -7909). IBIMA.
• Barro, R. J. (1990). Government spending in a simple model of endogenous growth. Journal of Political Economy, 98(5), 103-125. doi:10.1086/261726.
• Barro, R., & Lee, J. W. (1993). International comparisons of educational attainment. Journal of Monetary Economics, 32(3), 363-394. doi: 10.1016/0304- 3932(93)90023-9.
• Barro, R., & Sala-i-Martin, X. (1991). Convergence across states and regions. Brookings Papers on Economic Activity, 1, 107-182. doi: 10.2307/2534639.
• Becker, S. O., Egger, P. H., & Ehrlich, M. (2010). Going NUTS: the effect of EU structural funds on regional performance. Journal of Public Economics, 94(9-10), 578-590. doi: 10.1016/j.jpubeco.2010.06.006.
• Becker, S. O., & Egger, P. H., & von Ehrlich, M. (2018). Effects of EU regional policy: 1989-2013. Regional Science and Urban Economics, 69(C), 143-152. doi: 10.1016/j.regsciurbeco.2017.12.001.
• Bouayad-Agha, S., Turpin, N., & Vedrine, L. (2013). Fostering the development of European regions: a spatial dynamic panel data analysis of the impact of cohesion policy. Regional studies, 47(9), 1573-1593. doi: 10.1080/00343404.2011.628930.
• Breidenbach, P., Mitze, T., & Schmidt, C. M. (2019). EU regional policy and the neighbour's curse: analyzing the income convergence effects of ESIF funding in the presence of spatial spillovers. JCMS: Journal of Common Market Studies, 57(2), 388- 405. doi: 10.1111/jcms.12807.
• Butkus, M., Mačiulytė-Šniukienė, A., Matuzevičiutė, K., & Cibulskienė, D. (2019). What is the return on investing European regional development and cohesion funds? Difference-in-differences estimator approach. Ekonomický časopis, 67(6), 647-676.
• Caldas, P., Dollery, B., & Marques, R. C. (2018). European cohesion policy impact on development and convergence: a local empirical analysis in Portugal between 2000 and 2014. European Planning Studies, 26(6), 1081-1098. doi: 10.1080/09654313.2018.1449815.
• Cappelen, A., Castellaci, F., Fagerberg, J., & Verspagen, B. (2003). The impact of EU regional support on growth and convergence in the European Union. Journal of Common Market Studies, 41(4), 621-644. doi: 10.1111/1468-5965.00438.
• Czudec, A., Kata, R., & Wosiek, M. (2019). Reducing the development gaps between regions in Poland with the use of European Union funds. Technological and Economic Development of Economy, 25(3), 447-471. doi: 10.3846/tede.2019.9483.
• Dall'erba, S., & Le Gallo, J. (2007). The impact of EU regional support on growth and employment. Czech Journal of Economics and Finance (Finance a úvěr), 57(7-8), 324-340. doi: 10.1080/00343404.2020.1826040.
• Dall'erba, S., & Le Gallo, J., (2008). Regional convergence and the impact of European structural funds over 1989-1999: a spatial econometric analysis. Papers in Regional Science, 87(2), 219-244. doi: 10.1111/j.1435-5957.2008.00184.x.
• De La Fuente, A., & Domenech, R. (2006). Human capital in growth regressions: how much difference does data quality make? Journal of the European Economic Association, 4(1), 1-36. doi: 10.5755/j01.ee.26.5.8831.
• Dumciuviene, A., Stundziene, A., & Startiene, G. (2015). Relationship between structural funds and economic indicators of the European Union. Engineering Economics, 26(5), 507-516. doi: 10.5755/j01.ee.26.5.8831.
• Dumciuviene, D., & Stundziene, A. (2015). The efficiency of structural support and impact on economic and social indicators. Technological and Economic Development of Economy, 21(4), 660-675. doi: 10.3846/20294913.2015.1055616.
• Durlauf, S., Johnson, P., & Temple, J. (2005). Growth econometrics. In P. Aghion & S. N. Durlauf (Eds.). Handbook of economic growth (pp. 555-677). Elsevier. doi: 10.1016/S1574-0684(05)01008-7.
• Ederveen, S., de Groot, H., & Nahuis, R. (2006). Fertile soil for structural funds? A panel data analysis of the conditional effectiveness of European cohesion policy. Kyklos, 59(1), 17-42. doi: 10.2139/ssrn.338060.
• Enguix, M. R. M., García, J. G., & Gallego, J. C. G. (2012). An impact analysis of the European structural funds on the variation of the rate of employment and productivity in objective 1 regions. European Planning Studies, 20(4), 685-705. doi: 10.1080/09654313.2012.665038.
• European Commission (2022). Historic EU payments - regionalised and modelled. Retrieved form https://cohesiondata.ec.europa.eu/Other/Historic-EU-paymentsregionalised-and-modelled/tc55-7ysv/data.
• Eurostat (2022). Regional statistics by NUTS 2 classification. Retrieved form https://ec.europa.eu/eurostat/web/regions/data/database.
• Fratesi, U., & Perucca, G. (2014). Territorial capital and the effectiveness of cohesion policies: an assessment for CEE regions. Investigaciones Regionales, 29, 165-191.
• Fuente, A., Vives, X., Dolado, J., & Faini, R. (1995). Infrastructure and education as instruments of regional policy: evidence from Spain. Economic Policy, 10(20), 13-51. doi: 10.2307/1344537
• Fujita, M., Krugman, P., & Venables, A. J. (1999). The spatial economy: cities, regions and international trade. Cambridge: MIT Press. doi: 10.7551/mitpress/6389.001.0001.
• Hanushek, E. A. (2016). Will more higher education improve economic growth? Oxford Review of Economic Policy, 32(4), 538-552. doi: 10.1093/oxrep/grw025.
• Hoechle, D. (2007). Robust standard errors for panel regressions with crosssectional dependence. Stata Journal, 7(3), 281-312. doi: 10.1177/1536867X0700700301.
• Holmes, C. (2013). Has the expansion of higher education led to greater economic growth? National Institute Economic Review, 224(1), 29-47. doi: 10.1177/002795011322400103.
• Hruza, F., Volcík, S., & Žácek, J. (2019). The impact of EU funds on regional economic growth of the Czech Republic. Czech Journal of Economics and Finance (Finance a uver), 69(1), 76-94.
• Incaltarau, C., Pascariu, G. C., & Surubaru, N. C. (2020). Evaluating the determinants of EU funds absorption across old and new member states - the role of administrative capacity and political governance. JCMS: Journal of Common Market Studies, 58(4), 941-961. doi: 10.1111/jcms.12995.
• Islam, N. (2003). What have we learned from the convergence debate? Journal of Economic Surveys, 17(3), 309-362. doi: 10.1111/1467-6419.00197.
• Kehagia, A. (2013). The impact of EU's structural and cohesion funds. Review of literature. Jean Monnet on Political Economy, 6, Retrieved from https://jmonneteuldcs.files.wordpress.com/2013/11/kehagia.pdf (17.07.2021).
• Kersan-Škabić, I., & Tijanić, L. (2017). Regional absorption capacity of EU funds, Economic Research-Ekonomska Istraživanja, 30(1), 1191-1208. doi: 10.1080/1331677X.2017.1340174.
• Křístková, Z. (2012). Impact of R&D investment on economic growth of the Czech Republic - a recursively dynamic CGE approach. Prague Economic Papers, 21(4), 412-433. doi: 10.18267/j.pep.432.
• Křístková, Z. (2013). Analysis of private R&D effects in a CGE model with capital varieties: the case of the Czech Republic. Czech Journal of Economics and Finance, 63(3), 262-287.
• Krugman, P. (1991). Increasing returns and economic geography. University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship. Retrieved from https://ssrn.com/abstract=1505245 (11.11.2020.).
• Lovrinović, T.x, & Nakić, M. (2016). The impact of EU funds on the development of transition economies. In 13th international scientific conference on economic and social development (ESD) (pp. 142-151). Varazdin Dev & Entrepreneurship Agcy; Univ N, Economic and Social Development.
• Maynou, L., Saez, M., Kyriacou, A., & Bacaria, J. (2014). The impact of structural and cohesion funds on Eurozone convergence 1990-2010. Regional Studies, 50(7), 1127-1139. doi: 10.1080/00343404.2014.965137.
• Mendez, C. (2011). The Lisbonization of EU cohesion policy: a successful case of experimentalist governance? European Planning Studies, 19(3), 519-537. doi: 10.1080/09654313.2011.548368.
• Mendez, C. (2013). The post-2013 reform of EU cohesion policy and the placebased narrative. Journal of European Public Policy, 20(5), 639-659. doi: 10.1080/13501763.2012.736733.
• Mirošník, K., Petkovová, L., & Čadil, J. (2014). Statistical analysis of cohesion funding in the Czech Republic. Procedia Economics and Finance, 12, 437-444.
• Mohl, P., & Hagen, T. (2009). Econometric evaluation of EU cohesion policy: a survey. ZEW Discussion Papers, 09-052. doi: 10.2139/ssrn.1494324.
• Mohl, P., & Hagen, T. (2010). Do EU structural funds promote regional growth? New evidence from various panel data approaches. Regional Science and Urban Economics, 40(5), 353-365. doi: 10.1016/j.regsciurbeco.2010.03.005.
• Nickell, S. (1981). Biases in dynamic models with fixed effects. Econometrica, 49(6), 1417-1426. doi: 10.2307/1911408.
• Palevičienė, A., & Dumčiuvienė, D. (2015). Socio-economic diversity of European regions: finding the impact for regional performance. Procedia Economics and Finance, 23, 1096-1101. doi: 10.1016/S2212-5671(15)00431-1
• Pellegrini, G. (2016). Measuring the impact of structural and cohesion funds using regression discontinuity design in EU27 in the period 1994-2011. Brussels: European Commission. Retrieved from http://ec.europa.eu/regional_policy/sources/docgener/evaluation/pdf/expost2013/wp14c_task1_final_report_en.pdf (29.06.2021.).
• Pellegrini, G., Tarola, O., Bussilo, F., Muccigrosso, T., & Terribille, F. (2013). Measuring the impact of the European regional policy on economic growth: a regression discontinuity approach. Papers in Regional Science, 92(1), 217-233. doi: 10.1111/j.1435-5957.2012.00459.x
• Rodríguez-Pose, A., & Garcilazo, E. (2015). Quality of government and the returns of investment: examining the impact of cohesion expenditure in European regions. Regional Studies, 49(8), 1274-1290. doi: 10.1080/00343404.2015.1007933.
• Roodman, D. (2009). How to do xtabond2: an introduction to difference and system GMM in Stata. Stata Journal, 9(1), 86-136. doi: 10.1177/1536867X0900900106.
• Romer, P. M. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002-1037. doi: 10.1086/261420.
• Solow, R. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65-94. doi: 10.2307/1884513.
• Sterlacchini, A. (2008). R&D, higher education and regional growth: uneven linkages among European regions. Research Policy, 37(6-7), 1096-1107. doi: 10.1016/j.respol.2008.04.009.
• Stock, J., & Watson, M. (2011). Introduction to econometrics. Boston: Addison-Wesley.
• Swan, T. (1956). Economic growth and capital accumulation. Economic Record, 32(2), 334-361. doi: 10.1111/j.1475-4932.1956.tb00434.x.
• Tijanić, L., & Obadić, A. (2015). Can we boost the competitiveness of the European Union through reducing regional inequalities in human capital? Inzinerine Ekonomika-Engineering Economics, 26(3), 295-305. doi: 10.5755/j01.ee.26.3.8029.
• Tosun, J. (2014). Absorption of regional funds. Journal of Common Market Studies, 52(2), 371-387. doi: 10.1111/jcms.12088.

Identyfikatory

DOI

10.24136/eq.2022.029