This paper analyzes the impact of the European Union regional policy of the threeprogramming periods 1975-1988, 1989-1993 and 1994-1999 on the dynamics of productivity of European regions. On average, funding had a positive, but concave,eﬀect on productivity growth. In particular, a share of funds on GVA of 10% GVAis estimated to raise the regional growth rate of about 0.9% per year. However, byseparately considering the three programming periods and the composition of thefunds according to the objectives deﬁned by the EU, we ﬁnd that: i) only the fundsallocated in the second and third programming periods, when they remarkably increased, had a signiﬁcant impact; and ii) only Objective 1 and Cohesion funds playeda signiﬁcantly positive impact, while funds devoted to Objectives 2, 3, 4 and 5 had anegative or non signiﬁcant impact. The results are robust to potential endogeneityof funds and spatial dependence.
|Title of host publication||Discussion Paper
|Number of pages||0|
|Publication status||Published - 2009|