Euroscepticism and EU Cohesion Policy: The Impact of Micro-Level Policy Effectiveness on Voting Behavior

This study investigates whether there is a link between the successful implementation of European cohesion policy and the voters' attitudes towards the EU. Using the French presidential elections in 2017 as a case study, we do not solely consider regional funds expenditures but also its induced effects in a region as further potential determinant of pro-European or eurosceptic voting behavior. In order to measure the effectiveness of EU structural funds and Cohesion Fund assignment, firm-level employment effects in French NUTS-2 regions stemming from project allocation during the multi-annual financial framework 2007-2013 are estimated. The obtained average treatment effects are, in a next step, used together with other regional characteristics to capture the citizens' perceived exposure to the EU in an empirical voting model for the French presidential election in 2017. The estimation results reveal a significant negative relationship between the effectiveness of EU funds allocation and the vote share of the eurosceptic candidate Marine Le Pen.Series: Department of Economics Working Paper Serie

Guide to the galaxy of EU regional funds recipients: evidence from new data

This study presents a new firm- and project-level dataset containing data on over two million projects co-funded by the EU structural and cohesion funds in 25 EU member states during the programming period 2007-2013. Information on individual beneficiary firms and institutions is linked with business data of Bureau van Dijk's ORBIS database. Moreover, text mining techniques are applied to categorise the EU cohesion policy projects into fifteen thematic categories. Stylised facts reveal substantial regional heterogeneity in the distribution of funds to certain projects and beneficiaries (with respect to their size or industry). Furthermore, regional funds distribution differs across less developed and higher-income as well as urban and rural regions. In an econometric analysis, we control for project and firm characteristics that we expect to determine the single project's value, which is confirmed by the results. Nevertheless, there remains unexplained variation in individual project volumes, which differs systematically across countries

Spotlight on the beneficiaries of EU regional funds: A new firm-level dataset

This study introduces a new firm-level dataset containing over two million projects co-funded by the European Union´s (EU) structural and Cohesion funds in 25 EU member states in the multi-annual financial framework 2007-2013. Information on individual beneficiary firms and institutions published by regional authorities is linked with business data from Bureau van Dijk's ORBIS database. Moreover, we show how modern text mining techniques can be used to categorise EU funded projects into fifteen thematic categories proposed by the European Commission. A first analysis of the dataset reveals substantial heterogeneity of beneficiaries and projects across and within countries. While in the majority of lagging regions the largest project expenditure is dedicated to transportation and energy infrastructure, in most other regions the major part is assigned to innovation and technological development as well as business (including SME) support. In an econometric analysis we control for project and firm characteristics and find that the highest single project values are associated with older beneficiary firms that are larger in size. Furthermore, the projects with topmost expenditure are carried out in Dutch and British regions.Series: Department of Economics Working Paper Serie

Technological capabilities and the twin transition in Europe: Opportunities for regional collaboration and economic cohesion

Technological capabilities vary substantially across European regions. Combining these diverse sets of capabilities is crucial to develop the technologies necessary to master the green and digital transition. However, collaboration between regions is sparse today. To increase inter-regional cooperation, linkages that spur the development of green and digital technologies must be identified. In this study, we provide an overview of inter-regional collaborations already in place and map new opportunities for these between regions. A special emphasis is placed on potential collaborations between economically leading and lagging regions. Our results provide new impetus for policy designs that strengthen regional innovation capabilities and cohesion across Europe’s regions

Technological capabilities and the twin transition in Europe: Opportunities for regional collaboration and economic cohesion

Technological capabilities vary substantially across European regions. Combining these diverse sets of capabilities is crucial to develop the technologies necessary to master the green and digital transition. However, collaboration between regions is sparse today. To increase inter-regional cooperation, linkages that spur the development of green and digital technologies must be identified. In this study, we provide an overview of inter-regional collaborations already in place and map new opportunities for these between regions. A special emphasis is placed on potential collaborations between economically leading and lagging regions. Our results provide new impetus for policy designs that strengthen regional innovation capabilities and cohesion across Europe’s regions

EU cohesion policy on the ground: Analyzing small-scale effects using satellite data

We present a novel approach to analyze the effects of EU cohesion policy on local economic activity. For all municipalities in the border area of the Czech Republic, Germany, and Poland, we collect project-level data on EU funding in the period between 2007 and 2013. Using night light emission data as a proxy for economic development, we show that receiving a higher amount of EU funding is associated with increased economic activity at the municipal level. Our paper demonstrates that remote sensing data can provide an effective way to model local economic development also in Europe, where comprehensive cross-border data are not available at such a spatially granular level

EU research & innovation funding schemes: Using project-level data for monitoring & evaluation

Dieser nicht-technische Artikel fördert die Verwendung von Daten auf Projektebene zur Überwachung und Bewertung der Forschungs- und Innovationspolitik der EU. Zunächst wird ein neuer Datensatz von F&I-bezogenen Projekten eingeführt, die vom EFRE während des mehrjährigen Finanzrahmens 2014-2020 kofinanziert wurden. Zweitens werden diese Daten zusammen mit den Projektinformationen von Horizont 2020 verwendet, um die Verknüpfungen zwischen den Förderprogrammen in Bezug auf thematische Prioritäten sowie die Begünstigten zu untersuchen. Im Durchschnitt konnten 15 % der EFRE-Projekte identifiziert werden, die von einem Begünstigten durchgeführt werden, der auch Mittel aus dem Programm Horizont 2020 erhält

Greening and digitalizing the European economy : what’s in store for economic cohesion in the EU?

This contribution was delivered on 5 May 2022 on the occasion of the hybrid 2022 edition of EUI State of the Union on ‘A Europe fit for the next generation?'The European economy faces three major challenges. It must achieve a transition to a digital economy, to a low-carbon and sustainable economy, and to a more inclusive economy. Making Europe’s economy more resilient has become even more important with the Russian war on Ukraine. We already know that the next phase of transformation will be felt even more acutely by citizens. We also know that the social impact of these transformations will vary across European countries and regions. Too great a disparity in economic opportunities and development possibilities jeopardizes the attractiveness of the European Union and its ability to act – both internally and externally. In the past, the European Single Market has made a decisive contribution to the development of the member states and the well-being of Europeans. But the benefits of the single market are not evenly distributed among the countries and regions of the EU. The post-pandemic economic recovery will not even out the disparities by itself. And while the overall economic fallout from Russia’s war on Ukraine is still difficult to predict, the impact will be different for different EU member states and regions. What are the likely effects of European initiatives and policies to green and digitize the European economy on regional development and cohesion in Europe? And what can European policymakers do to strengthen European cohesion along the way

Administrative capacity and the territorial effects of EU support to firms: a two-step analysis

This paper investigates whether territorial characteristics and, in particular, regional administrative capacity influence the effects of European Union (EU) Cohesion Policy support to firms. A novel two-step methodology is applied. First, the effects of Cohesion Policy on employment growth of supported manufacturing firms are estimated separately for the regions of six different EU countries. Second, potential territorial factors influencing these effects are explored using meta-analysis techniques. The empirical results point to a significant relationship between firm-level policy effects and territorial capital, especially mixed-materiality assets, as well as administrative capacity as proxied by citizen engagement and administrative efficiency.</p

Evaluating EU cohesion policy using satellite data

In December 2020, the Council of the European Union adopted the EU's long-term budget for the years 2021 to 2027. With a share of 31 percent of the total budget (around 330 billion Euro), cohesion policy remains an important priority area. Given the large amount of resources dedicated to reduce economic and social disparities between European regions, it is essential to learn about the impact of different funding instruments in previous budgetary periods. In this project, we illustrate a novel approach of evaluating the economic effects of the European Regional Development Fund and the Cohesion Fund since 2007. For a selected pilot region in the border area of the Czech Republic, Germany and Poland we collect data on EU funding at the municipality level. Using night light emission data as a proxy for economic development, we show that the receipt of a higher amount of EU funding is associated with higher growth in these areas. The results of this project suggest that remote sensing data can be used effectively to capture the small-scale impact of place-based policies on economic development, even in a pan-European context