Measuring the effects of European Regional Policy on economic growth: A regression discontinuity approach1. (23rd October 2012)

• Record Type: Journal Article
• Authors: Pellegrini, Guido; Terribile, Flavia; Tarola, Ornella; Muccigrosso, Teo; Busillo, Federica
• Is Part Of: Papers in regional science. Volume 92:Number 1(2013:Mar.)
• Page Start: 217
• Page End: 233
• Publication Date: 2012-10-23
• Subjects: Regional planning -- Periodicals; City planning -- Periodicals; Urbanization -- Periodicals; Economic geography -- Periodicals; 307.12
• DOI: 10.1111/j.1435-5957.2012.00459.x
• Languages: English
• ISSNs: 1056-8190

Abstract

<abstract abstract-type="main"> <title>Abstract</title> <p>Given the increasing share of the EU budget devoted to Regional Policy, several studies have tried to identify the impact of structural funds on economic growth. However, so far no consensus has been reached. We assess Regional Policy effects through a non‐experimental comparison group method, the regression discontinuity design, and a novel regional dataset for the 1994–2006 period. We exploit the allocation rule of EU transfers by comparing regions with a <italic>per capita</italic> GDP level just below the eligibility threshold (75% of EU average) with those just above. Our findings show a positive impact of EU Regional Policy on economic growth.</p> </abstract>