Homework SourseBecker et al found a positive effect of cohesion funds on gr
Becker et al. found a positive effect of cohesion funds on growth. Is the effect evenly distributed across regions?
| No, regions with a higher than average level of human capital benefited more from the cohesion funds |
Solution
d) Cohesion funds are for those nations with a GNI of less than 90 per cent of the EU-27 average. It supports investment in urban environment, water & waste sectors, risk prevention, climate change adaptation.
Yes, all regions saw a positive impact of cohesion funds growth. Those with GNI below 75% of the EU-27 GNI experience faster growth than the nations with the GNI per capita value just above the 75 per cent threshold value. Regions with low absorptive capacity, as denoted by the human capital endowment, experience slower growth rate, than the ones with an above-average absorptive capacity.
