The local versus global dilemma of the effects of structural funds

Julie Le Gallo, Sandy Dall'Erba, Rachel Guillain

Research output: Contribution to journalArticlepeer-review


This paper extends the analysis by Dall'erba and Le Gallo dealing with the impact of structural funds on the growth process of European regions. Like most of the other 18 contributions assessing the efficiency of structural funds, our article was based on a global model of β-convergence: one coefficient pertaining to the structural funds variable was estimated for the whole sample. In this paper, we extend this approach by performing local estimations, where one coefficient is estimated for each region, so that the impact of structural funds can be regionally differentiated. As in the previous contribution, the presence of spatial spillover effects is taken into account using spatial econometric techniques, but here we apply a Bayesian locally linear spatial estimation method on a conditional β-convergence model, which allows global and local β-convergence to be viewed in a continuous fashion. Our results indicate that structural funds have a weak global impact on the European Union regional growth process, but that their local impacts are very diverse, with a positive influence on the growth of British, Greek, and southern Italian regions.

Original languageEnglish (US)
Pages (from-to)466-490
Number of pages25
JournalGrowth and Change
Issue number4
StatePublished - Dec 2011
Externally publishedYes

ASJC Scopus subject areas

  • Global and Planetary Change


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