Does European Cohesion Policy affect Regional Business Dynamics?

This paper assesses whether European Cohesion Policy funds from the 2007‑2013 programming period affected business dynamics in European regions. Using a regression discontinuity approach, the analysis shows that regions receiving more funds experienced higher firm births, without statistically sign...

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Main Authors: Paolo Veneri, Marcos Diaz Ramirez, Lukas Kleine-Rueschkamp
Format: Article
Language:English
Published: AECR 2023-11-01
Series:Investigaciones Regionales - Journal of Regional Research
Subjects:
Online Access:https://recyt.fecyt.es/index.php/IR/article/view/99209
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author Paolo Veneri
Marcos Diaz Ramirez
Lukas Kleine-Rueschkamp
author_facet Paolo Veneri
Marcos Diaz Ramirez
Lukas Kleine-Rueschkamp
author_sort Paolo Veneri
collection DOAJ
description This paper assesses whether European Cohesion Policy funds from the 2007‑2013 programming period affected business dynamics in European regions. Using a regression discontinuity approach, the analysis shows that regions receiving more funds experienced higher firm births, without statistically significant firm deaths, resulting in positive net firm creation and growing firm-related employment. In addition, this study confirms previous findings in the literature according to which regions receiving more funds show higher increases gross value added per worker. Finally, funds have a significantly higher effect on net business employment creation in regions with lower levels of perceived corruption, although this is not necessarily conductive to higher levels of labour productivity in those regions.
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institution OA Journals
issn 1695-7253
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language English
publishDate 2023-11-01
publisher AECR
record_format Article
series Investigaciones Regionales - Journal of Regional Research
spelling doaj-art-4b2692f4893b4717a6da26de77efa3e02025-08-20T01:50:27ZengAECRInvestigaciones Regionales - Journal of Regional Research1695-72532340-27172023-11-015710.38191/iirr-jorr.23.015Does European Cohesion Policy affect Regional Business Dynamics?Paolo Veneri0Marcos Diaz Ramirez1Lukas Kleine-Rueschkamp2Gran Sasso Science InstituteOECD Centre for Entrepreneurship, SMEs, Regions and CitiesOECD Centre for Entrepreneurship, SMEs, Regions and Cities This paper assesses whether European Cohesion Policy funds from the 2007‑2013 programming period affected business dynamics in European regions. Using a regression discontinuity approach, the analysis shows that regions receiving more funds experienced higher firm births, without statistically significant firm deaths, resulting in positive net firm creation and growing firm-related employment. In addition, this study confirms previous findings in the literature according to which regions receiving more funds show higher increases gross value added per worker. Finally, funds have a significantly higher effect on net business employment creation in regions with lower levels of perceived corruption, although this is not necessarily conductive to higher levels of labour productivity in those regions. https://recyt.fecyt.es/index.php/IR/article/view/99209Cohesion fundsbusiness dynamicschurningfirm creation
spellingShingle Paolo Veneri
Marcos Diaz Ramirez
Lukas Kleine-Rueschkamp
Does European Cohesion Policy affect Regional Business Dynamics?
Investigaciones Regionales - Journal of Regional Research
Cohesion funds
business dynamics
churning
firm creation
title Does European Cohesion Policy affect Regional Business Dynamics?
title_full Does European Cohesion Policy affect Regional Business Dynamics?
title_fullStr Does European Cohesion Policy affect Regional Business Dynamics?
title_full_unstemmed Does European Cohesion Policy affect Regional Business Dynamics?
title_short Does European Cohesion Policy affect Regional Business Dynamics?
title_sort does european cohesion policy affect regional business dynamics
topic Cohesion funds
business dynamics
churning
firm creation
url https://recyt.fecyt.es/index.php/IR/article/view/99209
work_keys_str_mv AT paoloveneri doeseuropeancohesionpolicyaffectregionalbusinessdynamics
AT marcosdiazramirez doeseuropeancohesionpolicyaffectregionalbusinessdynamics
AT lukaskleinerueschkamp doeseuropeancohesionpolicyaffectregionalbusinessdynamics