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The Local versus Global Dilemma of the Effects of Structural Funds
Author(s) -
LE GALLO JULIE,
DALL'ERBA SANDY,
GUILLAIN RACHEL
Publication year - 2011
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/j.1468-2257.2011.00564.x
Subject(s) - convergence (economics) , spillover effect , econometrics , economics , sample (material) , estimation , spatial econometrics , european union , econometric model , macroeconomics , international economics , chemistry , management , chromatography
This paper extends the analysis by Dall'erba and Le Gallo dealing with the impact of structural funds on the growth process of European regions. Like most of the other 18 contributions assessing the efficiency of structural funds, our article was based on a global model of β ‐convergence: one coefficient pertaining to the structural funds variable was estimated for the whole sample. In this paper, we extend this approach by performing local estimations, where one coefficient is estimated for each region, so that the impact of structural funds can be regionally differentiated. As in the previous contribution, the presence of spatial spillover effects is taken into account using spatial econometric techniques, but here we apply a Bayesian locally linear spatial estimation method on a conditional β ‐convergence model, which allows global and local β ‐convergence to be viewed in a continuous fashion. Our results indicate that structural funds have a weak global impact on the European Union regional growth process, but that their local impacts are very diverse, with a positive influence on the growth of British, Greek, and southern Italian regions.