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Are Structural Funds a Real Solution for Regional Development in the European Union? A Study on the Northeast Region of Romania

Author

Listed:
  • Ionel Bostan

    (Faculty of Law and Administrative Sciences, Ștefan cel Mare University, Universitatii 13, 720229 Suceava, Romania)

  • Andrei-Alexandru Moroşan

    (Faculty of Economics and Public Administration, Ștefan cel Mare University, Universitatii 13, 720229 Suceava, Romania)

  • Cristian-Valentin Hapenciuc

    (Faculty of Economics and Public Administration, Ștefan cel Mare University, Universitatii 13, 720229 Suceava, Romania)

  • Pavel Stanciu

    (Faculty of Economics and Public Administration, Ștefan cel Mare University, Universitatii 13, 720229 Suceava, Romania)

  • Iulian Condratov

    (Faculty of Economics and Public Administration, Ștefan cel Mare University, Universitatii 13, 720229 Suceava, Romania)

Abstract

Economic development has been a major priority for the European Commission, with significant amounts of Structural and Cohesion Funds being allocated in this direction. With the enlargements of the Union in 2004, 2007 and 2013, the Regional Development Policy faced a new challenge, with the disparity between new members and the community average being a notable one. The literature is divided with respect to the impact generated by funds allocated through the Regional Development Policy, as some authors claim the existence of positive effects, others identify conditional positive effects and other authors identify only negative effects and say that the whole support system needs to be rethought. This research presents an empirical approach to the issue of the effectiveness of the European Community’s support system for business environments. An analysis is performed at the microeconomic level in order to quantify observable effects at the level of the SMEs that have benefited from non-reimbursable financial aid. The data obtained indicate that Structural and Cohesion Funds for business environments have a significant effect in the medium and long terms, contributing to the achievement of the general objective of the Regional Development Policy (reducing economic disparities between EU member states).

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:6:p:232-:d:823275
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    References listed on IDEAS

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    1. Sjef Ederveen & Henri L.F. de Groot & Richard Nahuis, 2006. "Fertile Soil for Structural Funds?A Panel Data Analysis of the Conditional Effectiveness of European Cohesion Policy," Kyklos, Wiley Blackwell, vol. 59(1), pages 17-42, February.
    2. Thomas Farole & Andrés Rodríguez‐Pose & Michael Storper, 2011. "Cohesion Policy in the European Union: Growth, Geography, Institutions," Journal of Common Market Studies, Wiley Blackwell, vol. 49(5), pages 1089-1111, September.
    3. GHEORGHE ZAMAN & Anca CRISTEA, 2011. "EU Structural Funds Absorption in Romania: Obstacles and Issues," Romanian Journal of Economics, Institute of National Economy, vol. 32(1(41)), pages 60-77, June.
    4. Sjef Ederveen & Henri L.F. de Groot & Richard Nahuis, 2006. "Fertile Soil for Structural Funds?A Panel Data Analysis of the Conditional Effectiveness of European Cohesion Policy," Kyklos, Wiley Blackwell, vol. 59(1), pages 17-42, February.
    5. 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.
    6. Sandy DALL’ERBA & Rachel GUILLAIN & Julie LE GALLO, 2009. "Impact Of Structural Funds On Regional Growth: How To Reconsider A 9 Year-Old Black Box," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 30, pages 77-100.
    7. Zaman, Gheorghe & Georgescu, George, 2009. "Structural Fund Absorption: A New Challenge For Romania?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 6(1), pages 136-154, March.
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    9. Elias Soukiazis & Micaela Antunes, 2006. "Two Speed Regional Convergence In Portugal And the Importance of Structural Funds on Growth," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 9(2), pages 222-241, Winter.
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