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The economic spillovers of EU Cohesion policy 2007-2013

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Abstract

We investigate the macroeconomic impact of the 2007-2013 Cohesion Policy investments in the regions of the European Union (EU). We use the dynamic spatial general equilibrium model called RHOMOLO to assess the effects of the policy both in the short run and in the long run, with a focus on the spatial spillovers generated by the investments. The analysis shows that the Cohesion policy investments have a particularly positive economic impact on the least developed regions of the EU, with significant benefits spreading to the more developed regions. Our results bear relevant implications for the debate over the financing of the policy and the divide between its net contributors and net beneficiaries.

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  • Philippe Monfort & Francesca Crucitti & Nicholas Lazarou & Simone Salotti, 2021. "The economic spillovers of EU Cohesion policy 2007-2013," JRC Research Reports JRC125419, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc125419
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    File URL: https://publications.jrc.ec.europa.eu/repository/handle/JRC125419
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    Keywords

    rhomolo; region; growth; cohesion policy; general equilibrium; spatial spillovers;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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