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Fertile Soil for Structural Funds?

Sjef Ederveen (), Henri de Groot () and Richard Nahuis

No 02-096/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: Structural funds are the most intensively used policy instrument by the EuropeanUnion to promote economic growth in its member states and to speed up the process ofconvergence. This paper empirically explores the effectiveness of European Structural Fundsby means of a panel data analysis for 13 countries in the European Union. We show that – onaverage – Structural Funds are ineffective. For countries with the ‘right’ institutions,however, Structural Funds are effective. The latter result is obtained for a wide range ofconditioning variables, such as openness, institutional quality, corruption and indicatorsfor good governance.

Keywords: European Cohesion Policy; policy effectiveness; economic growth; European Union. (search for similar items in EconPapers)
JEL-codes: F35 F36 O11 O40 O52 R58 (search for similar items in EconPapers)
Date: 2002-10-07
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20020096

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