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REGIONAL CONVERGENCE AND THE IMPACT OF EUROPEAN STRUCTURAL FUNDS OVER 1989-1999: A SPATIAL ECONOMETRIC ANALYSIS

Sandy Dall'erba () and Julie Le Gallo ()

Urban/Regional from University Library of Munich, Germany

Abstract: This paper estimates the impact of structural funds on the convergence process between 145 European regions over 1989-1999. Since the majority of these funds finance transportation infrastructures, they induce spillover effects, industry relocation and do not necessarily succeed in reducing regional inequalities. To estimate their impact, including spillover effects, we first apply spatial econometrics on a conditional beta-convergence model; second, we simulate their impact on the targeted region and then on all the other regions. The results show that structural funds have positively benefited to the targeted regions’ growth, but that spillover effects are very small in peripheral regions.

Keywords: European structural funds; beta-convergence; spatial econometrics; geographic spillovers (search for similar items in EconPapers)
JEL-codes: C14 O52 R11 R15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec and nep-geo
Date: 2003-10-07, Revised 2004-02-12
Note: Type of Document -
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Related works:
Journal Article: Regional convergence and the impact of European structural funds over 1989-1999: A spatial econometric analysis (2008) Downloads
Working Paper: Regional convergence and the impact of European structural funds over 1989-1999: a spatial econometric analysis (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpur:0310005

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