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Regional growth and absorption speed of EU funds: when time isn’t money

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  • Benoit Dicharry

Abstract

This paper discusses the effects of European Union (EU) funds on gross domestic product growth by analysing the causal impact of regional absorption speed. The analysis is conducted using a regression discontinuity design approach with heterogeneous treatment on NUTS-2 regions during the period 2000–16. We show that faster absorption of EU funds in the Objective 1 regions, especially the Mediterranean ones, is associated with worse economic outcomes from the Objective 1 treatment. However, this pattern is not observed in the non-treated regions. Regarding policy implications, this study suggests that incentives to increase absorption speeds should be removed in Objective 1 regions.

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  • Benoit Dicharry, 2023. "Regional growth and absorption speed of EU funds: when time isn’t money," Regional Studies, Taylor & Francis Journals, vol. 57(3), pages 511-524, March.
    • Handle: RePEc:taf:regstd:v:57:y:2023:i:3:p:511-524
    DOI: 10.1080/00343404.2022.2092611
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    Cited by:

    1. Tiganasu, Ramona & Lupu, Dan, 2023. "Institutional quality and digitalization: Drivers in accessing European funds at regional level?," Socio-Economic Planning Sciences, Elsevier, vol. 90(C).

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