Improving government quality in the regions of the EU and its system-wide benefits for Cohesion policy

Javier Barbero, Martin Christensen, Andrea Conte, Patrizio Lecca, Andrés Rodríguez-Pose and Simone Salotti

No 2022-04, JRC Working Papers on Territorial Modelling and Analysis from Joint Research Centre

Abstract: We quantify the general equilibrium effects on economic growth of improving the quality of institutions at the regional level in the context of the implementation of the European Cohesion Policy for the European Union and the UK. The direct impact of changes in the quality of government is integrated in a general equilibrium model to analyse the system-wide economic effects resulting from additional endogenous mechanisms and feedback effects. The results reveal a significant direct effect as well as considerable system-wide benefits from improved government quality on economic growth. A small 5% increase in government quality across European Union regions increases the impact of Cohesion investment by up to 7% in the short run and 3% in the long run. The exact magnitude of the gains depends on various local factors, including the initial endowments of public capital, the level of government quality, and the degree of persistence over time.

Keywords: government quality; cohesion; economic growth; public investment; regions; EU (search for similar items in EconPapers)
JEL-codes: C68 O17 R13 R15 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2022-02
New Economics Papers: this item is included in nep-ban, nep-eec, nep-geo and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://publications.jrc.ec.europa.eu/repository/handle/JRC128443 (application/pdf)

Related works:
Journal Article: Improving Government Quality in the Regions of the EU and its System‐Wide Benefits for Cohesion Policy (2023)
Working Paper: Improving government quality in the regions of the EU and its system-wide benefits for cohesion policy (2023)
Working Paper: Improving government quality in the regions of the EU and its system-wide benefits for Cohesion policy (2022)
Working Paper: Improving government quality in the regions of the EU and its system-wide benefits for Cohesion policy (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ipt:termod:202204

Access Statistics for this paper

More papers in JRC Working Papers on Territorial Modelling and Analysis from Joint Research Centre Contact information at EDIRC.
Bibliographic data for series maintained by Publication Officer ().