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Contribution of EU Cohesion Policy to Regional Growth: Evidence from V4 Countries

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  • Martin Maris

Abstract

The EU Cohesion Policy is one of the European Union's key policy instruments for reducing economic and social disparities among its regions. The paper evaluates the policy contribution to regional economic growth in V4 (Visegrad Four) countries. The study establishes a significant variation in ESIF (European Structural and Investment Funds) distribution at the NUTS2 (Nomenclature of Territorial Units for Statistics) level within the V4 regions over 2000-2018. It suggests that ESIF absorption was not evenly distributed across regions within the V4 countries. This finding indicates that regional disparities in ESIF distribution may have contributed to economic imbalances within the countries. Secondly, a causal link between regional growth and ESIF absorption is identified. Along with other covariates, the use of the ESIF shows a statistically significant, although very modest, effect on the economic growth of V4 countries. Finally, the assumption of cross-country growth dispersion is investigated. The research results suggest statistically significant regional growth differences between Czechia and Slovakia on the one hand and Poland and Hungary on the other. It implies that the impact of ESIF absorption on economic growth may have varied among these V4 countries, potentially due to differences in policy implementation, economic structures or other factors.

Suggested Citation

  • Martin Maris, 2024. "Contribution of EU Cohesion Policy to Regional Growth: Evidence from V4 Countries," Prague Economic Papers, Prague University of Economics and Business, vol. 2024(2), pages 164-186.
    • Handle: RePEc:prg:jnlpep:v:2024:y:2024:i:2:id:855:p:164-186
    DOI: 10.18267/j.pep.855
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    References listed on IDEAS

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    1. Michael Landesmann & Roman Römisch, 2006. "Economic Growth, Regional Disparities and Employment in the EU-27," wiiw Research Reports 333, The Vienna Institute for International Economic Studies, wiiw.
    2. Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe’s regions: reconsidering European regional policies," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 16(32), pages 206-253.
    3. Hansen, Christian B., 2007. "Asymptotic properties of a robust variance matrix estimator for panel data when T is large," Journal of Econometrics, Elsevier, vol. 141(2), pages 597-620, December.
    4. Piotr Bartkiewicz & Ewa Cukrowska-Torzewska & Joanna Gebka & Andrzej Regulski & Julian Zawistowski & Malgorzata Zub & Piotr Rosik & Krzysztof Szczygielski & Aleksander Szpor, 2011. "Evaluation of benefits to the EU-15 countries resulting from the implementation of the Cohesion Policy in the Visegrad Group countries," IBS Research Reports 02/2011, Instytut Badan Strukturalnych.
    5. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
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    More about this item

    Keywords

    EU Cohesion Policy; economic growth; ESIF; V4 countries;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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