IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpep/v2024y2024i2id855p164-186.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://pep.vse.cz/doi/10.18267/j.pep.855.html
    Download Restriction: free of charge

    File URL: http://pep.vse.cz/doi/10.18267/j.pep.855.pdf
    Download Restriction: free of charge

    File URL: https://libkey.io/10.18267/j.pep.855?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    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. 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.
    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.
    6. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gruševaja, Marina & Pusch, Toralf, 2011. "How does Institutional Setting Affect the Impact of EU Structural Funds on Economic Cohesion? New Evidence from Central and Eastern Europe," IWH Discussion Papers 17/2011, Halle Institute for Economic Research (IWH).
    2. Davide Fiaschi & Andrea Mario Lavezzi & Angela Parenti, 2018. "Does EU cohesion policy work? Theory and evidence," Journal of Regional Science, Wiley Blackwell, vol. 58(2), pages 386-423, March.
    3. Carlos San Juan Mesonada & Carlos Sunyer Manteiga, 2021. "European Structural Funds and Resilient and Recovery Facility Governance," EconPol Working Paper 67, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Ferraro, Aniello & Cerciello, Massimiliano & Agovino, Massimiliano & Garofalo, Antonio, 2021. "Do public policies reduce social exclusion? The role of national and supranational economic tools," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 165-181.
    5. POP Andrada, 2020. "Eu Funding €“ A Positive Impact On Gdp?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 89-98, July.
    6. Saptorshee Kanto Chakraborty & Antoine Mandel, 2024. "Understanding EU regional macroeconomic tipping points using panel threshold technique," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-30, June.
    7. Lubica Stiblarova, 2024. "Transmission channels of the cohesion policy: direct and indirect effects on EA synchronicity," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 51(2), pages 379-402, May.
    8. Adriana Z. F. C. Nishimura & Ana Moreira & Manuel Au-Yong-Oliveira & Maria José Sousa, 2021. "Effectiveness of the Portugal 2020 Programme: A Study from the Citizens’ Perspective," Sustainability, MDPI, vol. 13(11), pages 1-21, May.
    9. Elena Calegari & Enrico Fabrizi & Gianni Guastella & Francesco Timpano, 2021. "EU regional convergence in the agricultural sector: Are there synergies between agricultural and regional policies?," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 23-50, February.
    10. Albanese, Giuseppe & Carrieri, Vincenzo & Speziali, Maria Maddalena, 2021. "Looking for a Star: Evaluating the Effect of the Cohesion Policy on Regional Well-Being," IZA Discussion Papers 14521, Institute of Labor Economics (IZA).
    11. Arne Melchior, 2009. "East-West Integration and the Economic Geography of Europe," CASE Network Studies and Analyses 0379, CASE-Center for Social and Economic Research.
    12. Tobias Hagen & Philipp Mohl, 2011. "Econometric Evaluation of EU Cohesion Policy: A Survey," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 16, Edward Elgar Publishing.
    13. Paolo Di Caro & Ugo Fratesi, 2022. "One policy, different effects: Estimating the region‐specific impacts of EU cohesion policy," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 307-330, January.
    14. Lapo Calamai, 2009. "The Link between Devolution and Regional Disparities: Evidence from the Italian Regions," Environment and Planning A, , vol. 41(5), pages 1129-1151, May.
    15. Marcin DÄ…browski, 2014. "Towards place-based regional and local development strategies in Central and Eastern Europe? EU cohesion policy and strategic planning capacity at the sub-national level," Local Economy, London South Bank University, vol. 29(4-5), pages 378-393, June.
    16. Gianfranco DI VAIO & Michele BATTISTI, 2010. "A Spatially-Filtered Mixture of Beta-Convergence Regression for EU Regions, 1980-2002," Regional and Urban Modeling 284100013, EcoMod.
    17. Vieira, Flávio & MacDonald, Ronald & Damasceno, Aderbal, 2012. "The role of institutions in cross-section income and panel data growth models: A deeper investigation on the weakness and proliferation of instruments," Journal of Comparative Economics, Elsevier, vol. 40(1), pages 127-140.
    18. Lutz Arnold & Christian Bauer, 2009. "On the growth and welfare effects of monopolistic distortions," Journal of Economics, Springer, vol. 97(1), pages 19-40, May.
    19. Jing Xing, 2011. "Does tax structure affect economic growth? Empirical evidence from OECD countries," Working Papers 1120, Oxford University Centre for Business Taxation.
    20. Schreiner, Lena & Madlener, Reinhard, 2022. "Investing in power grid infrastructure as a flexibility option: A DSGE assessment for Germany," Energy Economics, Elsevier, vol. 107(C).

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpep:v:2024:y:2024:i:2:id:855:p:164-186. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.