Cohesion Policy Meets Heterogeneous Firms
Bibliographic Data
| ID | 6279689 |
|---|---|
| Authors | Loredana Fattorini (0009-0004-3459-4932, IMT School for Advanced Studies Lucca Lucca), Mahdi Ghodsi (0000-0002-0991-7873, Vienna Institute for International Economic Studies Vienna), Armando Rungi (0000-0002-2204-582X, IMT School for Advanced Studies Lucca Lucca, corresponding author) |
| Year | 2020 |
| Volume | 58 |
| Issue | 4 |
| Pages | 803-817 |
| Publication date | 2020-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | JCMS Journal of Common Market Studies (JOURNAL) |
| Journal identifiers | ISSN: 0021-9886 • E-ISSN: 1468-5965 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/jcms.12989 |
| OpenAlex | W2789446355 |
| Language | EN |
| Citations received | 4 |
| References cited | 20 |
In this study we empirically tested the effect of the EU cohesion policy using a unique dataset of 273,500 European manufacturing firms, combining regional policy data at the UN Nomenclature of Territorial Units for Statistics‐2 level with total factor productivity (TFP) at firm‐level. In a framework of heterogeneous firms and regions' different absorptive capacity, we show that financing by the European regional development fund aimed at direct investments in R&D is associated with the improvement of firms' productivity in a region, while funding designed to support overall business is not. The positive association with research, technology and development spending is stronger in the first quartile of the TFP distributions, for the firms that are the least efficient in a region. This appears to be in line with the priority of the policy, which aims at improving firms' competitiveness, especially that of small and medium enterprises. We finally argue that considering the heterogeneous distribution of firms' inefficiencies in a region is crucial to designing a better cohesion policy and to avoid a misallocation of resources it is better than looking at regional aggregates
Business · Cohesion (chemistry · Distribution (mathematics · Economics · Industrial organization · Macroeconomics · Productivity · Quartile · Regional Policy · Total factor productivity · Regional Development and Policy · Regional Economics and Spatial Analysis · Regional resilience and development
Power Laws in Economics and Finance
Identification Properties of Recent Production Function Estimators
Estimating panel data models in the presence of endogeneity and selection
Inequality and convergence in Europe's regions
Going Nuts
Absorptive Capacity and the Growth and Investment Effects of Regional Transfers
Generalized reduced rank tests using the singular value decomposition
Capital Allocation and Productivity in South Europe
Too much of a good thing? On the growth effects of the EU's regional policy
Sample Selection Bias as a Specification Error
Robust Inference With Multiway Clustering
Import Demand Elasticities and Trade Distortions
The Productivity Advantages of Large Cities
Regional convergence and the impact of European structural funds over 1989–1999
Increasing Returns and Economic Geography
The Impact of EU Regional Support on Growth and Convergence in the European Union
| Unique citing works | 4 |
|---|---|
| Citations per year | 0.8 |
| Citation span | 2021 - 2025 (5) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 4 |