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The Impact of Structural and Cohesion Funds on Eurozone Convergence, 1990–2010

Laia Maynou, Marc Sáez, Andreas P. Kyriacou, Jordi Bacaria Colom

Regional Studies · 2014 · 70 citations · 48 references

TL;DR

The European Union has sought to promote economic convergence across Europe, especially within the Economic and Monetary Union, by allocating Structural and Cohesion Funds to its poorer regions and countries. This study examines whether these funds have fostered convergence among Eurozone countries between 1990 and 2010. A spatio‑temporal econometric analysis shows that the funds positively increased GDP per inhabitant in recipient regions, enabling them to achieve conditional convergence.

Abstract

Maynou L., Saez M., Kyriacou A. and Bacaria J. The impact of Structural and Cohesion Funds on Eurozone convergence, 1990–2010, Regional Studies. Ever since the launch of the European integration process, and in particular in the context of Economic and Monetary Union, the European Union has endeavoured to facilitate economic convergence across Europe by providing funds to its poorer regions and countries. The main objective of this paper is to analyse whether the Structural and Cohesion Funds have contributed towards convergence between the Eurozone countries during the past two decades, 1990–2010. The results of the spatio-temporal econometric model specified in this paper illustrate that these funds have positively contributed to the gross domestic product per inhabitant (GDPPC) growth of receiving regions, thus allowing them to reach (conditional) convergence.