relation: http://eprints.imtlucca.it/3893/
title: Cohesion Policy Meets Heterogeneous Firms
creator: Fattorini, Loredana
creator: Ghodsi, Mahdi
creator: Rungi, Armando
subject: HB Economic Theory
subject: HD Industries. Land use. Labor
description: In this paper, we empirically test the effects of the EU ‘cohesion policy’ on the performance of  about 500,000 European manufacturing firms after combining regional policy data at NUTS-  2 level with firm-level data. In a framework of heterogeneous firms and different absorptive  capacity of regions, we show that financing of ‘cohesion policy’ by European Regional Development  Fund (ERDF) aimed at direct investments in R&D correlates with improvement of firms’  productivity in a region. Conversely, funding designed at overall Business Support correlates  with negative productivity growth rates. In both cases, we registered an asymmetric impact  along the firms’ productivity distribution, where a stronger impact can be detected in the first  quartile, i.e. less efficient firms in a region. We finally argue that considering the heterogeneity  of firms allows a better assessment of the impact of ‘cohesion policy’ measures.
publisher: IMT School for Advanced Studies Lucca
date: 2018-02
type: Working Paper
type: NonPeerReviewed
format: application/pdf
language: en
rights: cc_by_nd
identifier: http://eprints.imtlucca.it/3893/1/EIC_WP_2_2018.pdf
identifier:   Fattorini, Loredana and Ghodsi, Mahdi and Rungi, Armando  Cohesion Policy Meets Heterogeneous Firms.  EIC working paper series  #2/2018    IMT School for Advanced Studies Lucca    ISSN 2279-6894.