A spatial macroeconomic analysis of the equity-efficiency trade-off of the European cohesion policy
In this study we use a spatial dynamic general equilibrium model to analyse the macroeconomic impact of cohesion policy-like investments in nine net beneficiary member states of the European Union. We examine whether or not the objective of reducing regional disparities (equity) prevents the interve...
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Published in | Spatial economic analysis Vol. 19; no. 3; pp. 394 - 410 |
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Main Authors | , , , , , , |
Format | Journal Article |
Language | English |
Published |
Glasgow
Routledge
02.07.2024
Taylor & Francis Ltd |
Subjects | |
Online Access | Get full text |
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Summary: | In this study we use a spatial dynamic general equilibrium model to analyse the macroeconomic impact of cohesion policy-like investments in nine net beneficiary member states of the European Union. We examine whether or not the objective of reducing regional disparities (equity) prevents the interventions from maximising their impact on national GDP impact (efficiency) by looking at GDP multipliers and interregional spillovers. We find that there may be an equity-efficiency trade-off depending on the characteristics of both the investments made and the targeted regional economies. Moreover, the analysis shows that the growth spillovers from more developed to less developed regions are limited. This implies that, in order to reduce regional disparities, investment must be made in the less developed regions of each country. |
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ISSN: | 1742-1772 1742-1780 |
DOI: | 10.1080/17421772.2024.2306948 |