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Beyond the EU Structural Funds’ Absorption Rate: How Do Regions Really Perform?

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  • Eirini Aivazidou

    (Department of Computer Science and Engineering (DISI), School of Science, Alma Mater Studiorum—University of Bologna, Mura Anteo Zamboni 7, 40126 Bologna, Italy
    Laboratory of Statistics and Quantitative Analysis Methods (LASCM), School of Mechanical Engineering, Aristotle University of Thessaloniki, P.O. Box 461, 54124 Thessaloniki, Greece)

  • Giovanni Cunico

    (Department of Computer Science and Engineering (DISI), School of Science, Alma Mater Studiorum—University of Bologna, Mura Anteo Zamboni 7, 40126 Bologna, Italy)

  • Edoardo Mollona

    (Department of Computer Science and Engineering (DISI), School of Science, Alma Mater Studiorum—University of Bologna, Mura Anteo Zamboni 7, 40126 Bologna, Italy)

Abstract

Although the EU structural funds aim to alleviate disparities through supporting regional development, their impact on local economies and societies is considered as uneven. As existing studies explore the absorption rate of the EU share of contribution as a point-in-time indicator at the end of the policy cycle, evidence about regional co-finance and the factors dynamically affecting absorption performance is lacking. To that end, this paper aims to provide a new longitudinal investigation of the absorption time series and develop an original indicator, supported by a statistical error analysis, for offering a transparent view of the total funds’ absorption. The analysis highlights that undesired regional strategies due to low administrative capacity may increase the absorption rate, though without supporting regional growth. The proposed approach could further facilitate the equitable allocation of political accountability regarding the structural funds’ absorption to the EU and the regions. Overall, it is anticipated that this research will support the EU in monitoring actual regional performance for prompting local managing authorities to improve their administrative capacity.

Suggested Citation

  • Eirini Aivazidou & Giovanni Cunico & Edoardo Mollona, 2020. "Beyond the EU Structural Funds’ Absorption Rate: How Do Regions Really Perform?," Economies, MDPI, vol. 8(3), pages 1-24, July.
    • Handle: RePEc:gam:jecomi:v:8:y:2020:i:3:p:55-:d:379152
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    1. Pawel Merlo & Jacek Michalak, 2021. "Competitiveness of Regions Versus Accessibility of Cultural Infrastructure: A Case Study of Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 365-387.
    2. Ionel Bostan & Andrei-Alexandru Moroşan & Cristian-Valentin Hapenciuc & Pavel Stanciu & Iulian Condratov, 2022. "Are Structural Funds a Real Solution for Regional Development in the European Union? A Study on the Northeast Region of Romania," JRFM, MDPI, vol. 15(6), pages 1-18, May.
    3. Cunico, Giovanni & Aivazidou, Eirini & Mollona, Edoardo, 2021. "Beyond financial proxies in Cohesion Policy inputs’ monitoring: A system dynamics approach," Evaluation and Program Planning, Elsevier, vol. 89(C).
    4. repec:ers:journl:v:xxiv:y:2021:i:special3:p:365-387 is not listed on IDEAS

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