3/2022 Karsten Staehr, Katri Urke. The European Structural and Investment Funds and Public Investment in the EU Countries
Working Papers of Eesti Pank 3/2022
Public investment is low and has declined in many EU countries since the global financial crisis. This paper estimates the effects of the various European Structural and Investment Funds (ESIF) on public investment in the EU countries. The analysis is run on annual data from 2000 to 2018 using dynamic panel data specifications. Funding from the Cohesion Fund, the EU’s facility for its less developed members, has an almost one-to-one effect on public investment in the short term and more in the longer term. Funding from the European Regional Development
Fund may have some effect, but it cannot be estimated precisely. Other ESIF funds do not have predictive effects on public investment in the EU countries.
JEL Codes: H54, H61, H77
Keywords: public investment, structural and investment funds, EU
Authors’ affiliations: Karsten Staehr (corresponding author): Tallinn University of Technology and Bank of Estonia, email: [email protected]. Katri Urke: Bank of Estonia.
The views expressed are those of the authors and do not necessarily represent the official views of the European Commission, Eesti Pank or the Eurosystem.