German structural policy is characterized by a composite indicator with three targets:(1) minimization of unemployment, (2) maximization of GDP, and (3) equalization of regional unemployment rates. The composite indicator with given target weights is maximized subject to budget constraints and...

This paper reconsiders the theoretical foundations of EU regional policy in economics. It begins with a discussion of the line of thought of its prevalent explanation in equilibrium economics which is focusing on market failures as its key underpinning and which is the major toolkit of...

Regional governments' discretion in allocating structural funds is mainly limited by the competences of the Commission to control implementation and fiscal activities of decentralized governments. In this paper, we analyse implementation of ERDF funds in Eastern Germany in the financial...

The capacity to absorb European funds is part of a state complex integrated admninistrative capacity, a component of a state as a whole. The analysis in this article starts from the theoretical development by studying the reports made by the Romanian Government, correlated with the European...

This report focuses on investment in eight EU Member States and their lagging regions. Additionally, the analysis assesses the regional development strategies of the eight Member States and evaluates the main investment needs and complementary alternative support options of the lagging regions...

This report is an annex to wiiw Research Report 423, 'Economic Challenges of Lagging Regions III Recent Investment Trends and Needs'. Based on spatial econometric methods, it provides estimates and simulations of the investment effects on economic development in the EU lagging regions. It also...

Although the EU structural funds aim to alleviate disparities through supporting regional development, their impact on local economies and societies is considered as uneven. As existing studies explore the absorption rate of the EU share of contribution as a point-in-time indicator at the end of...

Economic development has been a major priority for the European Commission, with significant amounts of Structural and Cohesion Funds being allocated in this direction. With the enlargements of the Union in 2004, 2007 and 2013, the Regional Development Policy faced a new challenge, with the...

The aim of the European Union's cohesion policy is to reduce development inequalities between the regions of the Member States and to increase economic, social, and territorial cohesion. Expenditures on it account for one-third of the European Union (EU) budget. Therefore, the appropriate and...

The study is based on the critical observations that competitive market forces alone are not able to assure convergence with the developed countries. These observations are grounded on the results of the computation of the marginal rate of return to capital (which contradict the neoclassical...