We present a novel approach to analyze the effects of EU cohesion policy on local economic activity. For all municipalities
in the border area of the Czech Republic, Germany, and Poland, we collect project-level data on EU funding in the period between
2007 and 2013. Using night light emission data as a proxy for economic development, we show that receiving a higher amount
of EU funding is associated with increased economic activity at the municipal level. Our paper demonstrates that remote sensing
data can provide an effective way to model local economic development also in Europe, where comprehensive cross-border data
are not available at such a spatially granular level.
Research group:Regional Economics and Spatial Analysis
