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Author: | Becker, S.O. Egger, P.H. Ehrlich, M. von |
Title: | Going NUTS: the effect of EU structural funds on regional performance |
Journal: | Journal of Public Economics
2010 : OCT, VOL. 94:9-10, p. 578-590 |
Index terms: | economic development gross national product employment probability regression analysis regional differences European Union |
Language: | eng |
Abstract: | The European Union (EU) provides allowances to disadvantaged regions of member states to let them catch up with the EU average. Under the Objective 1 scheme, NUTS2 regions, having a per capita GDP level below 75% of the EU average qualify for structural fund transfers from the central EU budget. This rule causes a regression-discontinuity design, exploiting the discrete jump in the probability of EU transfer receipt at the 75% threshold for identification of causal influences of Objective 1 treatment on outcome, such as EU regions' economic growth. Positive per capita GDP growth effects of Objective 1 transfers are found, however no employment growth effects were found. |
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