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Economic Change and Restructuring

, Volume 42, Issue 3, pp 211–228 | Cite as

The effect of EU structural funds on regional growth: assessing the evidence from Greece, 1990–2005

  • Sarantis E. G. Lolos
Article

Abstract

This paper brings empirical evidence on the impact of EU structural policy on regional income growth. The case of Greece over the period 1990–2005 is taken as an example. This period is characterized by the acceleration of the European integration process, with a central role assigned to the EU structural support to less prosperous regions. Regional growth is approached through the estimation of β-convergence equations using panel methods of estimation. The empirical results reveal a positive impact of structural funds support on regional growth while income convergence is enhanced. In addition, a significant influence of spatial income and unemployment spillovers on regional income growth is evidenced, illustrating the recent growth performance in Greece. Our results leave ample room for European regional policy to operate for the promotion of growth and the reduction of regional disparities.

Keywords

Regional growth Convergence Structural funds Spatial effects Greece 

JEL Classification

O470 R150 

Notes

Acknowledgments

Thanks are due to an anonymous referee for valuable comments and suggestions. All errors and omissions remain mine.

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Copyright information

© Springer Science+Business Media, LLC. 2009

Authors and Affiliations

  1. 1.Department of Economics and Regional DevelopmentPanteion UniversityAthensGreece

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