Work detail

The Impact of Structural Funds and Cohesion Fund on Convergence: The Case of Slovak Districts

Author: Mgr. Michal Kotrč
Year: 2020 - summer
Leaders: PhDr. Lenka Šťastná Ph.D.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 65
Awards and prizes:
Abstract: Do Structural Funds and Cohesion Fund contribute to the improvement of economic performance
across Slovak districts? In order to answer the question this thesis explores the impact of EU funds
invested within specific operational programmes over the programming periods 2007–2013 and
2014–2020 on the decrease in unemployment rate and on the increase in real wage and employment
rate. Besides the standard panel data regression technique we also apply a spatial autoregressive
model due to the presence of spillover effects between regions. This thesis thus goes beyond the
existing literature on the evaluation of the impact of EU funds in Slovakia as it incorporates spatial
effects in the analysis. In comparison with the results of the baseline fixed effects model, the
estimated impact of EU funds in the spatial autoregressive model is smaller and in certain cases even
negative. Hence the results raise doubts about the efficiency of EU funds. Furthermore, after
including the spatial effects we find that the existence and significance of the economic convergence
across Slovakia depends not only on the chosen economic indicator but also on the specification of
regional units.




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