Which is the Right Dose of EU Cohesion Policy for Economic Growth?

Philipp Mohl and Tobias Hagen

No 08-104, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: The current empirical literature on the impact of EU Cohesion Policy on the economic growth rates of the European regions mainly relies on functional form assumptions. However, it is ex ante not clear which functional form is appropriate with regard to the relationship between structural funds pay- ments and regional economic growth. In order to avoid such assumptions, this paper applies the method of generalized propensity score (GPS) to a sample of 122 NUTS-1 and NUTS-2 EU-15 regions for the time period 1995{2005, which leads to the estimation of a dose-response function, as proposed by Hirano and Imbens (2004). Our results indicate that structural funds payments have a positive, but not statistically significant, impact on the regions' average three-year growth rates. This implies that it does not matter which \dose" of structural funds payments a region receives.

Keywords: EU structural funds; economic growth; continuous treatment; dose-response function (search for similar items in EconPapers)
JEL-codes: C21 I38 R11 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-eec, nep-fdg and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:7478

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