The long and winding road to find the impact of EU funds on regional growth: IV and spatial analyses

Jan Fidrmuc, Martin Hulényi and Olga Zajkowska

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Abstract: We contribute to the analysis of the impact of European Union funds on European regional development. We find that the European funds have a significantly positive effect on regional economic growth in the European Union. This result is obtained both with ordinary least squares (OLS), and with two-stage least squares (2SLS) using the presence of environmentally protected areas as an instrument. Furthermore, we find that interregional spillovers are important: a significant part of the favourable effect seems to take place in nearby regions rather than in the recipient region.

Date: 2023-07-07
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Published in Regional Studies, 2023, 58 (3), pp.583-600. ⟨10.1080/00343404.2023.2217214⟩

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Journal Article: The long and winding road to find the impact of EU funds on regional growth: IV and spatial analyses (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04272335

DOI: 10.1080/00343404.2023.2217214

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