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Fertile Soil for Structural Funds?

Author

Listed:
  • Sjef Ederveen

    (CPB Netherlands Bureau for Economic Policy Analysis)

  • Henri L.F. de Groot

    (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Richard Nahuis

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

Structural funds are the most intensively used policy instrument by the EuropeanUnion to promote economic growth in its member states and to speed up the process ofconvergence. This paper empirically explores the effectiveness of European Structural Fundsby means of a panel data analysis for 13 countries in the European Union. We show that – onaverage – Structural Funds are ineffective. For countries with the ‘right’ institutions,however, Structural Funds are effective. The latter result is obtained for a wide range ofconditioning variables, such as openness, institutional quality, corruption and indicatorsfor good governance.

Suggested Citation

  • Sjef Ederveen & Henri L.F. de Groot & Richard Nahuis, 2002. "Fertile Soil for Structural Funds?," Tinbergen Institute Discussion Papers 02-096/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20020096
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    More about this item

    Keywords

    European Cohesion Policy; policy effectiveness; economic growth; European Union.;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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