European regional policy and growth An assessment by fiel of intervention

This article examines the effects of the European regional policy on the GDP and employment growth rates for the period 2000-2006 by field of intervention. We estimate response functions to the intensity of transfers by field of intervention (productive environment, infrastructure, human resources) using a generalized propensity score framework. We show that the total amounts of funds have positive and significant effects on the average annual GDP growth rate but are not significant on the growth rate of employment. We show a significant and positive effect of transfers in the infrastructure sector on both the GDP growth rate and to a lesser extent on the employment rate. The amounts used to develop the productive environment of enterprises affect the growth rate of GDP but not employment, while the amounts allocated to improving human capital have no significant effect.