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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.
SCIMA record nr: 275852
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