The EU Cohesion Policy in Context: Regional Growth and the Influence of Agricultural and Rural Development Policies

56 Pages Posted: 24 Dec 2014

See all articles by Riccardo Crescenzi

Riccardo Crescenzi

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Mara Giua

University of Rome III

Date Written: December 23, 2014

Abstract

This paper looks at the Cohesion Policy of the European Union (EU) and investigates how the EU agricultural and rural development policies shape its influence on regional growth. The analysis of the drivers of regional growth shows that the EU Regional Policy has a positive and significant influence on economic growth in all regions. However, its impact is stronger in the most economically advanced areas and is maximised when its expenditure is complemented by Rural Development and Common Agricultural Policy (CAP) funds. The top-down funding of the CAP seems to be able to concentrate some benefits in the most deprived areas. Conversely only the most dynamics rural areas are capable of leveraging on the bottom-up measures of the EU Rural Development Policy. This suggests that EU policy makers in all fields should constantly look for the best mix of bottom-up and top-down measures in order to tackle structural disadvantage.

Keywords: regional policy, European Union, regional growth, rural development, Common Agricultural Policy

JEL Classification: O18, R11, R58

Suggested Citation

Crescenzi, Riccardo and Giua, Mara, The EU Cohesion Policy in Context: Regional Growth and the Influence of Agricultural and Rural Development Policies (December 23, 2014). LEQS Paper No. 85, Available at SSRN: https://ssrn.com/abstract=2542244 or http://dx.doi.org/10.2139/ssrn.2542244

Riccardo Crescenzi (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Mara Giua

University of Rome III ( email )

Via Ostiense, 159
Rome, RM 00145
Italy

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