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Measuring the effects of European Regional Policy on economic growth: A regression discontinuity approach
Author(s) -
Pellegrini Guido,
Terribile Flavia,
Tarola Ornella,
Muccigrosso Teo,
Busillo Federica
Publication year - 2013
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5957.2012.00459.x
Subject(s) - regression discontinuity design , economics , discontinuity (linguistics) , regional policy , regression analysis , regression , political science , statistics , mathematics , mathematical analysis , law
Given the increasing share of the EU budget devoted to R egional P olicy, several studies have tried to identify the impact of structural funds on economic growth. However, so far no consensus has been reached. We assess R egional P olicy effects through a non‐experimental comparison group method, the regression discontinuity design, and a novel regional dataset for the 1994–2006 period. We exploit the allocation rule of EU transfers by comparing regions with a per capita GDP level just below the eligibility threshold (75% of EU average) with those just above. Our findings show a positive impact of EU R egional P olicy on economic growth.