The contribution of Cohesion Funds and nationally funded public investment to regional growth: evidence from Greece

Abstract

This paper sets out to estimate the contribution of European Union co-financed and nationally funded public investment expenditures to regional growth in Greece during the period 2000–14. The results are sensitive to the time period and the geographical level of the interventions. While nationally funded projects boosted the growth performance of the regions before the eruption of the economic crisis, there is no indication that the European Union co-financed projects have led to increased growth. The results question the additionality and coordination between European Union Cohesion Policy and the domestic regional policies for the promotion of regional growth in the less well-off regions of Europe.

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