Download - Regional and agricultural policies in the EU budget: working for EU territorial cohesion?
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Regional and agricultural policies in the EU budget: working for EU territorial
cohesion?
Riccardo Crescenzi Fabio Pierangeli
U.R. Università Roma Tre
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• Research questions & Objectives• EU funds and the regions• Dataset:
– Data coverage and availability – Units of analysis
• Preliminary results
OUTLINE
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Research hypothesesThe existing literature has observed a lack of upward mobility of Objective 1 regions and the absence of convergence across EU regions (e.g. Boldrin and Canova 2001);
suggested the implementation of inappropriate policies as an explanation of the weak impact of the EU funds convergence (Cappelen et al. 2003; Rodriguez-Pose and Fratesi 2004; Schucksmith, Thomson, Roberts 2003)
BUTcounterfactual scenario hard to construct
CONSEQUENTLY
We focus our attention upon the à priori structure of policies rather than upon their impact
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Objectives (1) Investigate two potential explanations for the weak
impact of EU policies on territorial cohesion and convergence:
• à priori bias in the geographical allocation of the funds– undermines the principle of concentration – prevents the intervention from targeting the real
sources of competitive disadvantage of EU regions
• inconsistent\conflicting distribution of resources under different EU policies
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Objectives (2)By looking at the EU expenditure for the CAP and EU Regional Policy (and its evolution over time) the paper will test:
• Potential inconsistencies\conflicts in the regional allocation of the funds(correlation between regional expenditure under different policy headings)
• Coherence with the principle of territorial concentration(spatial structure of the funding distribution)
• Capability to work pro-cohesion(Correlation with structural disadvantage)
• Influence of political factors(Correlation with proxies for regional bargaining power)
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•Policy areas: • CAP:
• First pillar • Second pillar
• Regional policy•Geographical coverage: EU-15
Regional level: • NUTS1 (Be, De, UK)
• NUTS2 (At, Fi, Fr, Gr, It, Nl, Pt, Es, Se)
•Time span: 1994-1999; 2000-2006; 2007-2013
DATASET: policy areas, spatial scale, time span
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Potential inconsistencies\conflicts in the regional allocation of the funds
(correlation between regional expenditure under different policy headings)
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First Pillar: Germany
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•Coherence with the principle of territorial concentration
(spatial structure of the funding distribution)
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Coef. P>|t| National Dummies R-SqSocio-Economic Disadvantage
Politiche Regionali 94-99 -293.011 0.009 Y 0.8068Politiche Regionali 00-06 -426.7528 0.008 Y 0.8227Politiche Regionali 07-13 -373.7815 0.006 Y 0.7795
Sviluppo Rurale 94-99 -78.76871 0.031 Y 0.4798Sviluppo Rurale 00-06 -186.2637 0.034 Y 0.5989Sviluppo Rurale 07-13 -128.0556 0.042 Y 0.5618
•Capability to work pro-cohesion(Correlation with structural disadvantage)
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-500
05
001
000
150
0
0 10000 20000 30000 40000Yt0_1995
Res Reg Policy 1994 Res Reg Policy 2000Res Reg Policy 2007
Regional Policy - Bargaining Component
•Influence of political factors(Correlation with proxies for regional bargaining power)
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-500
05
001
000
150
0
0 10000 20000 30000 40000Yt0_1995
Res Rur Dev 1994 Res Rur Dev 2000Res Rur Dev 2007
Rural Development - Bargaining Component
•Influence of political factors(Correlation with proxies for regional bargaining power)
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-100
00
100
02
000
300
0
0 10000 20000 30000 40000Yt0_1995
Res First Pillar 1994 Res First Pillar 2000Res First Pillar 2007
PAC First Pillar - Bargaining Component
•Influence of political factors(Correlation with proxies for regional bargaining power)
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Explaining the ‘bargaining premium”
• Alternative explanations in the Political Economy literature:– Administrative efficiency and governance– Party Politics– Devolution
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