Fertile Soil for Structural Funds? A Panel Data Analysis of the Conditional Effectiveness of European Cohesion Policy

Tinbergen Institute Working Paper No. 2002-096/3

21 Pages Posted: 5 Feb 2003

See all articles by Sjef Ederveen

Sjef Ederveen

CPB Netherlands Bureau of Economic Policy Analysis

Henri L. F. de Groot

VU University Amsterdam - Department of Spatial Economics; Tinbergen Institute

Richard Nahuis

CPB Netherlands Bureau of Economic Policy Analysis (Deceased)

Multiple version iconThere are 2 versions of this paper

Date Written: September 2002

Abstract

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

Keywords: European Cohesion Policy, policy effectiveness, economic growth, European Union

JEL Classification: F35, F36, O11, O40, O52, R58

Suggested Citation

Ederveen, Sjef and de Groot, Henri L.F. and Nahuis, Richard, Fertile Soil for Structural Funds? A Panel Data Analysis of the Conditional Effectiveness of European Cohesion Policy (September 2002). Tinbergen Institute Working Paper No. 2002-096/3. Available at SSRN: https://ssrn.com/abstract=338060 or http://dx.doi.org/10.2139/ssrn.338060

Sjef Ederveen (Contact Author)

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
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+31 70 33 83 373 (Phone)
+31 70 33 83 350 (Fax)

HOME PAGE: http://www.cpb.nl/eng/general/org/homepages/jpe/

Henri L.F. De Groot

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
Amsterdam, 1081 HV
Netherlands
+31 20 598 6168 (Phone)
+31 20 598 6004 (Fax)

Tinbergen Institute

Gustav Mahlerplein 17
Amsterdam, 1082 MS
Netherlands

Richard Nahuis

CPB Netherlands Bureau of Economic Policy Analysis (Deceased)

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