The Macroeconomic Effects of EU Regional Structural Funds Articles uri icon

publication date

  • February 2015

start page

  • 327

end page

  • 360

issue

  • 1

volume

  • 23

International Standard Serial Number (ISSN)

  • 1542-4766

Electronic International Standard Serial Number (EISSN)

  • 1542-4774

abstract

  • We examine the macroeconomic effects of two EU regional structural funds. The European regional development fund (ERDF) has positive short term average consequences, but gains typically dissipate within 3 years. The European Social Fund has insignificant average short term effects, but the medium term effect is positive and economically important. There are regional heterogeneities in terms of location, level of development, EU tenure, Euro area membership, and national borders. The reaction of regional government expenditure to shocks in the structural funds accounts for the differences. The implications for the EU Recovery and Resilience Facility are discussed.

subjects

  • Economics