Regional needs, regional targeting, and regional growth: an assessment of EU Cohesion Policy in UK regions

Di Cataldo, Marco and Monastiriotis, Vassilis (2020) Regional needs, regional targeting, and regional growth: an assessment of EU Cohesion Policy in UK regions. Regional Studies, 54 (1). 35 - 47. ISSN 0034-3404

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Abstract

With the prospective exit of the UK from the European Union (EU), a crucial question is whether EU Structural Funds have been beneficial for the country and which aspects of Cohesion Policy should be maintained if EU funds are to be replaced. This paper addresses this question through a twofold investigation, assessing not only whether but also how EU funds have contributed to regional growth in the UK from 1994 to 2013. It documents a significant and robust effect of Cohesion Policy in the UK, with higher proportions of Structural Funds associated with higher economic growth both on the whole and particularly in the less developed regions of the country. In addition, it is shown that the strategic orientation of investments also plays a distinct role for regional growth. While concentration of investments on specific pillars seems to have no direct growth effects, unless regions can rely on pre-existing competitive advantages in key development areas, clear evidence is unveiled that targeting investments to specific areas of relative regional need has a significant and autonomous effect on growth. These findings have important implications for the design of regional policy interventions in Britain after Brexit.

Item Type:	Article
Official URL:	https://www.tandfonline.com/toc/cres20/current
Additional Information:	© 2018 Regional Studies Association
Divisions:	European Institute
Subjects:	H Social Sciences > HB Economic Theory J Political Science > JN Political institutions (Europe)
JEL classification:	O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O18 - Regional, Urban, and Rural Analyses R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes R - Urban, Rural, and Regional Economics > R5 - Regional Government Analysis > R53 - Public Facility Location Analysis; Public Investment and Capital Stock
Date Deposited:	10 Jul 2018 16:04
Last Modified:	10 Mar 2024 02:45
URI:	http://eprints.lse.ac.uk/id/eprint/89190

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