A helping hand, but not a lift. EU Cohesion Policy and regional development

Eva Dettmann and Sarah Fritz

No 18/2025, IWH Discussion Papers from Halle Institute for Economic Research (IWH)

Abstract: This study provides new evidence on the impact of the EU Cohesion Policy on income growth in less developed regions. Our panel includes data from all European regions for the years 1989-2020. Using a fuzzy Regression Discontinuity Design, we model treatment dynamics by applying a random effects estimator. Based on digitized historical data, we precisely replicate the policy rule and correctly classify the regions' eligibility status. Results show that the policy has a moderate positive effect on GDP per capita growth in the targeted regions.

Keywords: causal analysis; EU Cohesion Policy; regression discontinuity design; place-based policy (search for similar items in EconPapers)
JEL-codes: H20 R11 R58 Z18 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-eec, nep-eur, nep-geo and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhdps:330917

DOI: 10.18717/k8bw-5d69

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