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Year 2014, Volume: 3 Issue: 1, 50 - 59, 01.03.2014

Hale Akbulut

Abstract

References

  •  Arellano, M. and Bover, O. (1995), Another Look at the Instrumental Variable Estimation of Error-Components Models, Journal of Econometrics, Vol. 68, No. 1, pp. 29-51. Baltagi B. H. (2001), Econometric Analysis of Panel Data, Chichester: Wiley.
  •  Barro R. J. (1990), Government Spending in a Simple Model of Endogenous Growth, Journal of Political Economy, Vol. 98, No. 5, pp. 103-125.
  •  Beugelsdijk, M., Eijffinger, S. C. W. (2003), The Effectiveness of Structural Policy in the European Union: An Empirical Analaysis for the EU-15 During The Period 1995-2001, Centre for Economic Policy Research Discussion Paper, No. 3879.
  •  Blundell, R. and Bond, S. (1998), Initial Conditions and Moment Restrictions in Dynamic Panel Data Models , Journal of Econometrics , Vol. 87, No. 1, pp. 115-143.
  •  Bussoletti, S. and Esposti, R. (2004), Regional Convergence, Structural Funds and The Role of Agriculture in the EU: A Panel-Data Approach, Universita Politecnica delle Marche, Dipatimento die Economia Working Paper, No. 220.
  • Cappelen, A., Castellacci, F., Fagerberg, J., and Verspagen, B. (2003), The Impact of EU Regional Support on Growth and Convergence in the European Union, Journal of Common Market Studies, Vol. 41, No. 4, pp. 621-644.
  • Dall'erba, S. and Gallo, J. L. (2004), Regional Convergence and The Impact of
  • European Structural Funds 1989-1999: A Spatial Econometric Analysis, Papers in
  • Regional Science, Vol. 82, No. 2, pp. 219-244.  Doornik, J.A. and Hendry, D.F. (2001), GiveWin: An Interface to Emprical Modelling, London: Timberlake Consultants Press.
  •  Ederveen, S., Groot, H, L. F. and Nahuis, R. (2006), Fertile Soil for Structural Funds? A Panel Data Analysis of the Conditional Effectiveness of European Cohesion Policy, Kyklos, Vol. 59, No. 1, pp. 17-42.
  •  European Commission (1999), Council Regulation (EC), No. 1260/1999, pp. 1–42.
  •  Garcia-Mila, T. and McGuire, T. (2001), Do Interregional Transfers Improve the Economic Performance of Poor Regions? The Case of Spain, International Tax and Public Finance, Vol. 8, No. 3, pp. 281-295.
  •  Greene, W. H. (2002), Econometric Analysis, New Jersey: Prentice Hall.
  •  Gujarati D. N. (2003), Basic Econometrics, Boston: Mc-Graw-Hill. Gwartney, J., Lawson, R. and Hall, J. (2013), Economic Freedom of the World: 2013 Annual Report, Canada: Fraser Institution: Canada, http://www.freetheworld.com/ datasets_efw.html .
  •  Hsiao C. (2003), Analysis of Panel Data, Cambridge: Cambridge University Press.
  •  Islam N. (1995), Growth Empirics: A Panel Data Approach, Quarterly Journal of Economics, Vol. CX, No. 4, pp. 1127-1170.
  •  Khadraoui N. (2012), Financial Development and Economic Growth: Static and Dynamic Panel Data Analysis, International Journal of Economics and Finance, Vol. 4, No. 5.
  •  Mohl, P. and Hagen, T. (2009), Do EU Structural Funds Promote Regional Growth? Evidence From Various Panel Data Approaches, 24th Annual Conference of the EEA, 23-27 August, Barcelona.
  •  Pritchett L. (2001), Where Has All The Education Gone?, World Bank Economic Review, Vol. 15, No. 3, pp. 367-391.
  • Puigcerver-Penalver, M. (2004), The Impact of Structural Funds Policy on European Regions Growth: A Theoretical and Empirical Approach, European Journal of
  • Comparative Economics, Vol.4, No. 2, pp. 179-208. Rajkumar A. and Swaroop, V. (2002), Public Spending and Outcomes: Does
  • Governance Matter?, World Bank Working Papers, No. 2840.
  •  Rodriguez-Pose, A. and Fratesit, U. (2007), Between Development and Social Policies: The Impact of European Structural Funds in Objective 1 Regions, Regional Studies, Vol. 38, No.1, pp. 97-113.
  •  World Bank (2013), World Development Indicators (WDI-GDF 2013).
  •  http://data.worldbank.org/data-catalog/world-development-indicators .

Testing Growth Effects of European Union Structural Funds According to Size of Government: A Dynamic Approach

Year 2014, Volume: 3 Issue: 1, 50 - 59, 01.03.2014

Hale Akbulut

Abstract

The aim of this study is to examine the relationship between European Union structural funds and economic growth rates of receiver countries. An econometric model is constituted and data are obtained in panel data form. The relationship is tested with system-Generalized Method of Moments (GMM), a dynamic panel method for 27 European Union countries between the period of 2000 and 2011. Data are divided into two samples according to size of government and model is reestimated. Assuming capital accumulation and structural funds as endogenous, it is concluded that structural funds have no statistically significant effect on economic growth regardless of the sample choice.

Keywords

Structural funds dynamic panel method size of government.

References

  •  Arellano, M. and Bover, O. (1995), Another Look at the Instrumental Variable Estimation of Error-Components Models, Journal of Econometrics, Vol. 68, No. 1, pp. 29-51. Baltagi B. H. (2001), Econometric Analysis of Panel Data, Chichester: Wiley.
  •  Barro R. J. (1990), Government Spending in a Simple Model of Endogenous Growth, Journal of Political Economy, Vol. 98, No. 5, pp. 103-125.
  •  Beugelsdijk, M., Eijffinger, S. C. W. (2003), The Effectiveness of Structural Policy in the European Union: An Empirical Analaysis for the EU-15 During The Period 1995-2001, Centre for Economic Policy Research Discussion Paper, No. 3879.
  •  Blundell, R. and Bond, S. (1998), Initial Conditions and Moment Restrictions in Dynamic Panel Data Models , Journal of Econometrics , Vol. 87, No. 1, pp. 115-143.
  •  Bussoletti, S. and Esposti, R. (2004), Regional Convergence, Structural Funds and The Role of Agriculture in the EU: A Panel-Data Approach, Universita Politecnica delle Marche, Dipatimento die Economia Working Paper, No. 220.
  • Cappelen, A., Castellacci, F., Fagerberg, J., and Verspagen, B. (2003), The Impact of EU Regional Support on Growth and Convergence in the European Union, Journal of Common Market Studies, Vol. 41, No. 4, pp. 621-644.
  • Dall'erba, S. and Gallo, J. L. (2004), Regional Convergence and The Impact of
  • European Structural Funds 1989-1999: A Spatial Econometric Analysis, Papers in
  • Regional Science, Vol. 82, No. 2, pp. 219-244.  Doornik, J.A. and Hendry, D.F. (2001), GiveWin: An Interface to Emprical Modelling, London: Timberlake Consultants Press.
  •  Ederveen, S., Groot, H, L. F. and Nahuis, R. (2006), Fertile Soil for Structural Funds? A Panel Data Analysis of the Conditional Effectiveness of European Cohesion Policy, Kyklos, Vol. 59, No. 1, pp. 17-42.
  •  European Commission (1999), Council Regulation (EC), No. 1260/1999, pp. 1–42.
  •  Garcia-Mila, T. and McGuire, T. (2001), Do Interregional Transfers Improve the Economic Performance of Poor Regions? The Case of Spain, International Tax and Public Finance, Vol. 8, No. 3, pp. 281-295.
  •  Greene, W. H. (2002), Econometric Analysis, New Jersey: Prentice Hall.
  •  Gujarati D. N. (2003), Basic Econometrics, Boston: Mc-Graw-Hill. Gwartney, J., Lawson, R. and Hall, J. (2013), Economic Freedom of the World: 2013 Annual Report, Canada: Fraser Institution: Canada, http://www.freetheworld.com/ datasets_efw.html .
  •  Hsiao C. (2003), Analysis of Panel Data, Cambridge: Cambridge University Press.
  •  Islam N. (1995), Growth Empirics: A Panel Data Approach, Quarterly Journal of Economics, Vol. CX, No. 4, pp. 1127-1170.
  •  Khadraoui N. (2012), Financial Development and Economic Growth: Static and Dynamic Panel Data Analysis, International Journal of Economics and Finance, Vol. 4, No. 5.
  •  Mohl, P. and Hagen, T. (2009), Do EU Structural Funds Promote Regional Growth? Evidence From Various Panel Data Approaches, 24th Annual Conference of the EEA, 23-27 August, Barcelona.
  •  Pritchett L. (2001), Where Has All The Education Gone?, World Bank Economic Review, Vol. 15, No. 3, pp. 367-391.
  • Puigcerver-Penalver, M. (2004), The Impact of Structural Funds Policy on European Regions Growth: A Theoretical and Empirical Approach, European Journal of
  • Comparative Economics, Vol.4, No. 2, pp. 179-208. Rajkumar A. and Swaroop, V. (2002), Public Spending and Outcomes: Does
  • Governance Matter?, World Bank Working Papers, No. 2840.
  •  Rodriguez-Pose, A. and Fratesit, U. (2007), Between Development and Social Policies: The Impact of European Structural Funds in Objective 1 Regions, Regional Studies, Vol. 38, No.1, pp. 97-113.
  •  World Bank (2013), World Development Indicators (WDI-GDF 2013).
  •  http://data.worldbank.org/data-catalog/world-development-indicators .
There are 25 citations in total.

Details

Journal Section Articles
Authors

Hale Akbulut This is me

Publication Date March 1, 2014
Published in Issue Year 2014 Volume: 3 Issue: 1

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APA Akbulut, H. (2014). Testing Growth Effects of European Union Structural Funds According to Size of Government: A Dynamic Approach. Journal of Business Economics and Finance, 3(1), 50-59.

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