EUROPEAN COHESION POLICY TO THE RESCUE? REVISING (COUNTER)-CYCLICAL EFFECTS IN THE EU-28 RECIPIENT COUNTRIES

• Authors: Stiblarova Lubica
• Languages of publication: EN

Abstracts

EN

This paper empirically verifies recent efforts of EU policymakers and government authorities to apply the European Cohesion Policy (ECP) as a possible counter-cyclical instrument to boost economies in their economic downturns. Compared to limited country-specific studies, we allow for an endogeneity issue between the business cycles and the ECP payments and apply a system GMM estimation for the EU-28 recipient countries sample in the time period 2000 – 2018. Even though the overall ECP payments follow a pro-cyclical path, the model estimations for the sub-periods based on individual programming periods reveal a time-varying cyclical character of the ECP. Whereas the observed pro-cyclicality can be mainly contributed to the period 2000 – 2006, we find the conditional counter-cyclical effects in 2007 – 2013 and 2014 – 2018, when a lower price level and obeying the rule of law seem to have an extra counter-cyclical dimension, confirming a rationale of the convergence criteria and the stability and the growth pact.

Keywords

EN

ALLOCATION; EUROPEAN COHESION POLICY; CYCLICALITY; GMM; ESTIMATION; EU

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2022
• Volume: 70
• Issue: 9-10
• Pages: 681 – 702

Contributors

author

Stiblarova Lubica

• Technical University of Košice, Faculty of Economics, Němcovej 32, 040 01 Košice, Slovak Republic

• https://orcid.org/0000-0002-6453-6758

Identifiers

DOI

https://doi.org/10.31577/ekoncas.2022.09-10.01