European Funding for Sustainable Transport Systems—Influencing Factor of Regional Economic Development in Romania

Ana Maria Bocaneala (), Daniel Sorin Manole, Elvira Alexandra Gherasim, Bianca Motorga and Livia Cristina Iliescu
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Ana Maria Bocaneala: Economics 1 Doctoral School, Bucharest University of Economic Studies (ASE), 010374 Bucharest, Romania
Daniel Sorin Manole: Department of Economic Sciences, Constantin Brâncoveanu University, Calea Bascovului 2a, 110095 Pitești, Romania
Elvira Alexandra Gherasim: Economics 1 Doctoral School, Bucharest University of Economic Studies (ASE), 010374 Bucharest, Romania
Bianca Motorga: Economics 1 Doctoral School, Bucharest University of Economic Studies (ASE), 010374 Bucharest, Romania
Livia Cristina Iliescu: Economics 1 Doctoral School, Bucharest University of Economic Studies (ASE), 010374 Bucharest, Romania

Economies, 2024, vol. 12, issue 3, 1-26

Abstract: Sustainable development is a core concept in regional development. Sustainability is characterized by supporting the building of resilient infrastructure and promoting the sustainable industry. In this context, sustainable transport is particularly important as it represents an opportunity for regional development. This research aims to quantify the impact of investments through structural instruments, specifically EU funds, on promoting a sustainable transport system and eliminating barriers from large-scale transport networks. This study focuses on the impact of these investments on regional economic development in Romania. The analysis used data from all eight development regions of the Romanian economy between 2014 and 2020. Panel data regression models, including the generalized difference method of moments (Dif-GMM) and the system GMM method (Sys GMM), were employed. This study confirms the idea that European structural and investment funds (ESIFs) play a positive role in promoting sustainable transport for regional economic development. Additionally, the quality of regional governance is identified as a key factor in economic development. This study, therefore, reveals a convergence effect between regions. Regions with a lower initial GDP per capita develop quicker compared to regions with a higher initial GDP per capita, indicating a “catch-up” effect. From a policy perspective, these issues can guide decision making and resource allocation.

Keywords: regional development; sustainable transport; European funds; economic development; sustainable development (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2024
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