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Administrative Capacity and the Territorial Effects of EU Support to Firms: a Two-step Analysis
This paper investigates whether territorial characteristics and, in particular, regional administrative capacity influence
the effects of European Union (EU) Cohesion Policy support to firms. A novel two-step methodology is applied. First, the effects
of Cohesion Policy on employment growth of supported manufacturing firms are estimated separately for the regions of six different
EU countries. Second, potential territorial factors influencing these effects are explored using meta-analysis techniques.
The empirical results point to a significant relationship between firm-level policy effects and territorial capital, especially
mixed-materiality assets, as well as administrative capacity as proxied by citizen engagement and administrative efficiency.
JEL-Codes:R5, R11, R58
Keywords:EU Cohesion Policy
Forschungsbereich:Regionalökonomie und räumliche Analyse
Sprache:Englisch