A look behind the curtain: measuring the complex economic effects of regional structural funds in Germany

Jonathan Eberle, Thomas Brenner, Timo Friedel Mitze

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Abstrakt

This paper investigates the mutual impact channels of Germany’s major regional policy instrument (GRW) on regional economic development. Different from earlier studies which have predominately focused on a partial assessment of output effects, we explicitly endogenize the factor inputs of the underlying production function. This allows us to comprehensively assess the role of the GRW in driving per capita output, employment, human and physical capital intensities as well as the region’s technology level. The results from a spatial panel vector autoregressive model show that GRW funding has significant positive effects on regional output, the employment rate and human capital intensity.
OriginalsprogEngelsk
Antal sider51
StatusUdgivet - 2017
NavnWorking Papers on Innovation and Space
Nummer3
Vol/bind2017

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