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The Importance of EU Cohesion Policy for Economic Growth and Convergence

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  • Maximilian von Ehrlich

Abstract

This chapter discusses factors that contributed to different economic dynamics across European regions and the prevailing disparities. The impact of EU Cohesion Policy in reducing disparities is studied based on the empirical evidence on the effects of EU regional policy. With more than thirty years of experience, several important conclusions can be drawn about the effectiveness and efficiency of place-based transfers in Europe. While EU regional policy has not completely countered market-driven processes that lead to regional disparities, it appears to have modestly alleviated them. To enhance the effectiveness of EU Cohesion Policy, this chapter advocates for an improved policy design and a shift in emphasis towards local institutions and governments in recipient regions, emphasizing that merely increasing the volume of transfers cannot compensate for these improvements.

Suggested Citation

  • Maximilian von Ehrlich, 2024. "The Importance of EU Cohesion Policy for Economic Growth and Convergence," Diskussionsschriften credresearchpaper46, Universitaet Bern, Departement Volkswirtschaft - CRED.
    • Handle: RePEc:rdv:wpaper:credresearchpaper46
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    More about this item

    Keywords

    : EU Structural Policy; Place-based policies; regional inequality; economic geography;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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