Skip to Main Content

Regional Development

Selected e-articles

Abstract: Economic inequality has increased in many EU countries in the past few decades. Yet efforts to assess regional disparities across the EU mostly concentrate on convergence in average per capita incomes, offering little analysis of how regional income is distributed. Using new data from the Luxembourg Income Study (LIS) for 1989–2013, we test whether income inequality convergence has taken place among EU regions and assess which structural factors may affect the pace of this process. The analysis offers three findings. First, NUTS 2 regions are converging to a higher level of income inequality. Second, this process is significantly faster when regions share similar structural characteristics. Finally, there is evidence of a convergence-acceleration effect for regions receiving Cohesion Policy funds, suggesting therefore that these may be driving the convergence process.

Abstract: Building on the case of European Union (EU) regions, we study the macroeconomic impact of related diversification. We use an indicator of technological related variety in combination with stochastic frontier estimation and a well-established general equilibrium model to assess the rationale for related diversification and to understand the relevance of different region-specific policies. The results suggest that related diversification has a greater potential for less advanced regions than for more advanced ones. This has interesting implications for industrial policy, calling for a differentiated approach depending on the technological space and level of development of different regions.

Abstract: The study aimed to evaluate whether the regional funds allocated for energy efficiency and renewable energy are related to the quantity of air pollutants discharged and the stage of regional development, and whether the evidence of convergence of regional levels of renewable energy electricity generation can be provided. A comparative analysis of financial instrument implementation within regional programmes was conducted, with a particular focus on instruments dedicated to enhancing energy efficiency and utilising renewable energy. To verify the research hypotheses, statistical coefficients of correlation and concentration, along with trend and econometric models were applied. The findings have confirmed the rise in regional funds for energy efficiency and renewable energy, along with the growing importance of financial instruments in transforming the energy sector. The hypotheses that air pollutant emissions per unit of GDP generated are decreasing, there exists a regional convergence of renewable energy production per capita, and the spatial accumulation of renewable energy production is declining, have been confirmed. No correlation was found between the regional economic development and the level of funds allocated to energy efficiency and renewable energy. The lack of such relationships provides a convincing argument for appropriate state regulation.

Abstract: One of the most important policies of the European Union is regional development, which comprises measures of enhancing economic growth and citizens' living standards via strategic investment. Considering that economic growth and wellbeing are intertwined from the perspective of EU policies, this study examines the relationship between wellbeing-related infrastructure and economic growth in 212 NUTS 2 regional subdivisions across the members of Eu-28 during the period 2001-2020. We therefore analyzed data from 151 Western Europe regions and 61 Central and Eastern Europe regions by means of a panel data analysis with the first-difference generalized method of moments estimator. Our main interest was to determine the degree to which Western Europe regions responded to predictors as compared to Central and Eastern Europe regions. According to the empirical results, the predictors with the strongest influence for Western Europe regions were disposable household income, inter-regional mobility, housing indicator, labor force and participation. For Central and Eastern Europe regions, the largest impact was triggered by the housing indicator, internet broadband access and air pollution. In addition, we determined a relational weighted multiplex between all variables of interest by using dynamic time warping and we introduced topological measures in a multilayer multiplex model for both regional subsamples.

Abstract: The European Union and the whole world are facing the problem of increasing income and wealth inequalities at the country and regional levels. Inequalities are a severe obstacle to sustainable and balanced growth. Politicians perceive this problem by trying to implement different types of development models. The cohesion policy is the European Union's response to the development differences between countries and regions. It is clearly defined that development has to be sustainable and inclusive, which is reflected in the objectives of all leading EU development strategies. The aim of this paper is (1) to examine how effective the EU cohesion policy is in reducing regional disparities (2) to assess that the main cause of regional disparities is the misallocation of human capital. The authors base their study on the regions of Poland, estimating the state of their human capital and innovation between 2004 and 2018. We examine the effectiveness of cohesion policy using functional data analysis—the Wilcoxon test, which was used for the first time for this type of issue. The current question is whether to help metropolises and large cities, which will entail the development of smaller units, or whether to try to increase the rate of development of smaller and economically weaker territorial units in the first place.

Abstract: Despite increasing interest in energy transitions in the European Union, little attention has been paid conceptually to regional energy transitions in terms of development nor to the potential regional impacts of cumulative policies. A contextual understanding of regional energy transitions in Europe is therefore lacking. To address this gap, this paper considers regional energy transitions from a political economy perspective, using an institutional lens and critical varieties of capitalism approach to examine European Union policy responses within the scope of innovation driven and growth based regional development. Policy responses for regional energy transitions are first structured using crises as turning points and then explored in three themes: an energy transition with roots in coal regions; an energy transition that harnesses the green growth agenda; and an energy transition intensified by multiple crises. Going beyond the traditional economic aspects of regional policy and acknowledging the contradictions of green growth, critical reflection on these themes calls into question the extent of policy responses to address the potentially diverse regional futures enabled through the energy transition. Considering the aim of territorial cohesion, renewable energy resources and green innovation capacities can be seen as either sources of prosperity or aggravators of existing inequalities. Further attention is therefore needed toward current understandings of regional development in light of policy objectives and the sustainability ambitions of regional transitions. While limiting this analysis to the green growth logic, the arguments acknowledge critical perspectives that can potentially be brought into European policy perspectives for sustainable regional development.

Abstract: The concept of regional development trap refers to regions that face significant structural challenges in retrieving past dynamism or improving prosperity for their residents. This article introduces and measures the concept of the regional development trap for regions in Europe. The concept draws inspiration from the middle-income trap in international development theory but widens it to shed light on traps in higher-income countries and at the regional scale. We propose indicators—involving the economic, productivity, and employment performance of regions relative to themselves in the immediate past, and to other regions in their respective countries and elsewhere in Europe—to identify regions either in a development trap or at significant near-term risk of falling into it. Regions facing development traps generate economic, social, and political risks at the national scale but also for Europe as a whole.

Abstract: The European Union has made considerable investments in transport infrastructures to reduce development gaps within and across territories and achieve a stronger regional cohesion. However, these economic efforts have not shown the expected effects, especially in peripheral regions, mainly due to the varied nature of their inner areas. This study aims to shed light on the existence of different types of areas inside peripheral regions that respond differently to the construction of new high-capacity roads, conditioning the achievement of cohesion goals. These disparities were explored through a detailed intraregional analysis of the peripheral Spanish Northwest Area over a 25-year period, through the identification of spatial categories that group homogenous areas in attention to three criteria: socio-economic development, spatial dynamics of urbanization and accessibility improvements. The application of a hierarchical clustering technique to different time scenarios and their comparison showed the existence of dynamic, stable and regressive areas, in terms of performance. Our findings reveal that with accessibility improvements regressive areas decreased and dynamic ones increased over time, but this transformation did not translate into an improvement in socio-economic intraregional cohesion. These results highlight the importance of considering intraregional diversity when formulating and implementing policies aimed at strengthening territorial cohesion.

Abstract: Cohesion Policy is a core policy of the European Union, the main objective of which is to address uneven economic growth across the EU by promoting balanced and sustainable development. Given its characteristics, it certainly has a great impact on the daily life of European citizens and can compensate population groups and places less favoured by the implementation of the internal market and economic and monetary union. As a result, Cohesion Policy is expected to shape regional support for European integration. This study tests this assumption using regional data for the EU-28 in a period that includes the recent phases of expansion and recession, in a scenario characterized by growing anti-EU rhetoric. The results suggest that a greater amount of EU funds spent in the region does not stimulate support for the Union. However, an appropriate temporal distribution of the resources allocated to the region could have a positive effect.

Abstract: Many academic papers have looked at the economic effects of the EU cohesion policy, which still remain an open empirical issue. The focus of the most recent literature has been on the heterogeneous effects of the policy and the identification of regional conditioning factors. However, most of the existing studies generally assume slope homogeneity for different cross‐sectional units (i.e., regions) and they estimate the average effects of the policy for all the European regions and/or selected groups of regions. Past works also employ data covering few programming periods. This paper has two main goals. First, we study the heterogeneous consequences of EU cohesion policy on regional economic growth in Europe over the past three decades, by applying a heterogeneous coefficient approach to new panel‐time series data. We calculate the region‐specific effects of the policy in terms of long‐run gross domestic product growth. Second, we study regional differences in terms of policy effects depending on the level of assistance received by the regions. We make a distinction among cases of effective, ineffective, trigger and marginal policy. We also document that the effectiveness of EU cohesion policy in the long run can be explained by some of the key factors used in the literature. Finally, we discuss the need for ineffective cases to learn from effective and trigger ones.

Abstract: This article investigates the role of European Union Cohesion Policy in the development of European identity, drawing on an original and representative survey in 17 regions across 12 member states. We advance a theoretical model which distinguishes cognitive, instrumental and communicative drivers of identity formation. Contrary to existing scholarship, we find that EU Cohesion Policy does contribute to European identity. Citizens that perceive benefits for themselves and for their region's development from EU Cohesion Policy are more likely to develop a European identity. We also find that awareness of the EU Cohesion Fund and exposure to publicity on EU funded projects is positively correlated with European identity. However, while Cohesion Policy contributes to citizens’ self-categorization as European, it does not associate with their emotional attachment to Europe. The study has important implications for understanding European identity formation and communicating the benefits and role of the EU in regional policy.

Abstract: Through an analysis of total factor productivity for European regions using an econometric identification strategy, we find that significant impacts exist for both urban size and structure. A larger urban size positively affects regional productivity. Polycentric urban structures have no directly identified impacts on productivity. We find that an interaction between urban size and polycentricity has a negative effect, suggesting that polycentric regions are unable to substitute for the economic urbanization externalities associated with a single large city. These findings have important implications for the European Union-wide policy agenda on urban development and regional productivity.

Abstract: Regional innovation in Europe is analyzed with Fuzzy-set Qualitative Comparative Analysis, distinguishing between different economic development level categories and between innovation performance groups within each category. Different mechanisms were identified based on varying conjunctions of business and public sector R&D, spatial proximity to external R&D, networks of collaborations, tolerance and inclusion, and human capital. More developed regions present four main mechanisms that lead to regional innovation. Namely, a technologically driven mechanism, a business R&D driven technological mechanism, a mechanism driven primarily by internal R&D competencies and tolerance and inclusion, and a general path to regional innovation, supporting a public R&D driven technological mechanism. When the analysis focuses on moderate innovators, the absence of skilled human capital is added as a relevant condition owing primarily to the lack of technological and technical skills in some regions. For lagging regions, the relevant innovation definition excludes patenting as these regions focus on ‘softer’ innovation aspects than technological innovation. Innovation in lagging regions is primarily driven by public R&D supported by tolerance and inclusion or by networks of collaboration. The latter might work as a condition compensating for -often unfavorable- geography.

Abstract: Climate change is taking place on a global scale and it is substantially affected by human activity, including increasing greenhouse gas emissions. One of the thematic objectives of EU’s new financial objective is a more environmentally friendly low-emission Europe that promotes clean and fair energy transformation, green investments, and a circular economy, among others. The Polish economy is mainly based on energy production from conventional sources (fossil fuels). Considering that the demand for electricity in Poland is predicted to increase by as much as 50% until 2040, it is necessary to take action aimed at increasing the share of renewable energy sources. The subject of analysis is the Opolskie Voivodeship (a NUTS 2 type region), the capital of which features the biggest Polish coal power plant. In 2014–2019, it was expanded by two units with 1800 MW in total capacity, thereby indicating that investments in energy obtained from conventional sources are still implemented and to a large extent at that (the expansion has been the biggest infrastructural investment in Poland since 1989). The Opolskie region is characterised by substantial excess in acceptable environmental burden (dust pollution, among others). The aim of the paper is to evaluate the key environmental conditions for the Opolskie region’s development in terms of the assumptions of the domestic and EU energy policies. The Opolskie region’s developmental challenges in the environmental area were determined on the basis of selected indicator estimations up to 2030. The research hypothesis assumes that the environmental conditions for the Opolskie region’s development are unfavourable. The methodological part features an analysis of the cause and effect dependencies in the “environment” area, which enabled an assessment of the Opolskie Voivodeship’s current situation as well as an analysis of the dependencies relevant to the region’s development. This was followed by an estimation of selected indicators in the “environment” area until 2030, which allowed for an assessment of their probable levels and thereby a specification of the region’s development conditions. The estimation was conducted using the data available in public statistics, i.e., Statistics Poland’s data. The indicators estimated for 2030 were presented using three forecasting methods: (a) the monotonic trend, (b) the yearly average change rate, and (c) the logarithmic trend.

Abstract: This geospatial research on Finnish energy poverty reveals that rural areas have potentially higher energy poverty vulnerability than urban areas. The analyses focus on household energy expenditures (HEE) in postcode areas and detect local high or low HEE determinants. The urban-rural typology is applied and found relevant when studying energy poverty and identifying spatial dependencies. The findings demonstrate that rural areas are more vulnerable to energy price increases than urban areas, and the spatial clustering of vulnerability to energy poverty is evident and temporally permanent. The main reason for energy poverty is related to postcode areas' socioeconomic status and building stock characteristics, indicating the accumulation of the negative impacts of regional development on energy poverty vulnerability. The results also suggest that monitoring not only levels of energy poverty but also the temporal dynamics of energy poverty is essential to ensure the effectiveness of policy measures and solutions.

Abstract: This paper analyses the effect of the macroeconomic efficiency of Cohesion Policy on within-country economic cohesion as reflected by various measures of sigma convergence by applying macroeconomic HERMIN models for the Czech, Polish and Slovak regions. The results reveal that from 2021 to 2027, Cohesion Policy will have a relatively small impact on within-country convergence. More importantly, Cohesion Policy seems to be doomed to fail in terms of reducing within-country disparities in the long run; that is, the structural differences among regional economies effectively prevent European Union support from narrowing the development gap between regions.

Abstract: Economic development has been a major priority for the European Commission, with significant amounts of Structural and Cohesion Funds being allocated in this direction. With the enlargements of the Union in 2004, 2007 and 2013, the Regional Development Policy faced a new challenge, with the disparity between new members and the community average being a notable one. The literature is divided with respect to the impact generated by funds allocated through the Regional Development Policy, as some authors claim the existence of positive effects, others identify conditional positive effects and other authors identify only negative effects and say that the whole support system needs to be rethought. This research presents an empirical approach to the issue of the effectiveness of the European Community's support system for business environments. An analysis is performed at the microeconomic level in order to quantify observable effects at the level of the SMEs that have benefited from non-reimbursable financial aid. The data obtained indicate that Structural and Cohesion Funds for business environments have a significant effect in the medium and long terms, contributing to the achievement of the general objective of the Regional Development Policy (reducing economic disparities between EU member states).

Further sources

If you are unable to access the article you need, please contact us and we will get it for you as soon as possible.

Data Protection Notice   Cookie Policy & Inventory
Library Catalogue
Journals on all devices
Books, articles, EPRS publications & more
Newspapers on all devices