Juan Cándido Gómez Gallego

An Impact Analysis of the European Structural Funds on the Variation of the Rate of Employment and Productivity in Objective 1 Regions

Regional policies seek to enable regions to increase their competitiveness and development, and as such one priority Objective of activities financed by Structural Funds is higher employment, higher productivity and economic activity. How efficiently the regions apply the funds is a fundamental issue for the development and continuity of regional policies. We therefore consider that determining the efficiency of European regional policies is an issue of high importance, and this is the main aim of this study. We have considered it appropriate to use the available information to apply a mathematical technique known as Data Envelopment Analysis (DEA), which allows us to calculate the technical efficiency and inefficiency of the Structural Funds applied in the Objective 1 regions for the period 2000–2006. Furthermore, we wish to determine if the regions have been more efficient in creasing their levels of employment or in increasing productivity. Our study applies this methodology along with other methods like regression analysis, profit analysis and factorial analysis to determine the variation in the rate of unemployment and productivity in these European Regions. The study reveals that only eight regions are efficient, although none of them is run in all the models.Regional policies seek to enable regions to increase their competitiveness and development, and as such one priority objective of activities financed by Structural Funds is higher employment, higher productivity and economic activity. How efficiently the regions apply the funds is a fundamental issue for the development and continuity of regional policies. We, therefore, consider that determining the efficiency of European regional policies is an issue of high importance, and this is the main aim of this study. We have considered it appropriate to use the available information to apply a mathematical technique known as data envelopment analysis, which allows us to calculate the technical efficiency and inefficiency of the Structural Funds applied in the Objective 1 regions for the period 2000--2006. Furthermore, we wish to determine if the regions have been more efficient in increasing their levels of employment or in increasing productivity. Our study applies this methodology along with other methods such as regression analysis, profit analysis and factorial analysis to determine the variation in the rate of unemployment and productivity in these European Regions. The study reveals that only eight regions are efficient, although none of them is in all the models run.

Efficiency on the Implementation of Structural Funds by European Regions: An Analysis of the Objective 1 Regions over the Period 2000--2006

Given the large volume of resources employed in policies financed by the Structural Funds and the importance of the Objectives pursued, this paper seeks to perform an analysis of the efficiency of the application of these resources to increase productivity and employment by those regions classified as Objective 1 over the period 2000–2006. In the first place we are going to identify which are the most efficient regions by calculating both the level of efficiency according to the results obtained from the resources used (pure technical efficiency (PTE)) and the degree of efficiency according to their optimum production capacity (scale efficiency (SE)) and we have determine the “Reference Set” for inefficient regions. Finally, we will analyse the extent to which certain factors have repercussions on the efficiency such as country, geographical location and contribution of agriculture of GDP. The result indicates that the PTE of the regions are higher level although it does operate on an optimum scale. Furthermore, the country, geographical location and contribution of agriculture of GDP have significantly influences of PTE and SE.Given the large volume of resources employed in policies financed by the Structural Funds and the importance of the Objectives pursued, this paper seeks to perform an analysis of the efficiency of the application of these resources to increase productivity and employment by those regions classified as Objective 1 over the period 2000--2006. In the first place we are going to identify which are the most efficient regions by calculating both the level of efficiency according to the results obtained from the resources used (pure technical efficiency (PTE)) and the degree of efficiency according to their optimum production capacity (scale efficiency (SE)) and we have determine the “Reference Set” for inefficient regions. Finally, we will analyse the extent to which certain factors have repercussions on the efficiency such as country, geographical location and contribution of agriculture of GDP. The result indicates that the PTE of the regions are higher level although it does operate on an optimum scale. Furthermore, the country, geographical location and contribution of agriculture of GDP have significantly influences of PTE and SE.