eprintid: 3893
rev_number: 9
eprint_status: archive
userid: 6
dir: disk0/00/00/38/93
datestamp: 2018-02-02 10:30:43
lastmod: 2018-02-02 10:30:43
status_changed: 2018-02-02 10:30:43
type: monograph
metadata_visibility: show
creators_name: Fattorini, Loredana
creators_name: Ghodsi, Mahdi
creators_name: Rungi, Armando
creators_id: loredana.fattorini@imtlucca.it
creators_id: 
creators_id: armando.rungi@imtlucca.it
title: Cohesion Policy Meets Heterogeneous Firms
ispublished: pub
subjects: HB
subjects: HD
divisions: EIC
full_text_status: public
monograph_type: imt_eic_working_paper
keywords: Keywords: firm performance, total factor productivity, cross-country analysis, convergence,
regional policy.  -  
JEL Classification Numbers: D22, D24, E23, F15, L25.
abstract: 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.
date: 2018-02
date_type: published
number: 2
publisher: IMT School for Advanced Studies Lucca
pages: 32
institution: IMT School for Advanced Studies Lucca
issn: 2279-6894
citation:   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.      
document_url: http://eprints.imtlucca.it/3893/1/EIC_WP_2_2018.pdf