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11. On the Economic Effects of a Reallocation of EU Cohesion Policy Expenditures

Author:
Stefan Jestl and Roman Römisch
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the economic effects of a reallocation of Cohesion Policy expenditures across EU countries. We evaluate a shift from stronger (i.e. older) Member States to less-developed EU economies (i.e. CEE countries) and vice versa. On top of that, we also assess the effects of a general reduction in the Cohesion Policy budget. For evaluation, we construct a demand-driven macroeconomic model which spans country models of 21 EU economies and is calibrated based on empirical data for the period 1995-2018. Our results suggest that a shift of Cohesion Policy funds to more (less) developed countries would result in a higher (lower) overall economic performance. However, the reallocation would affect economic outcomes in EU economies unevenly. In addition to direct effects on demand and production, it is pivotal to take into account indirect effects via trade as well. As a result, Cohesion Policy seems to be confronted with a trade-off between long-run convergence and short-run economic performance.
Topic:
Economics, International Political Economy, European Union, Economic Growth, Investment, and Economic Cooperation
Political Geography:
Europe and European Union

12. Estimating Demand Spillovers of EU Cohesion Policy Using European Regional Input-Output Tables

Author:
Roman Römisch
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper develops a simple method to consistently break down world input-output tables to regional input-output tables. They are used to estimate Cohesion Policy-induced demand spillovers in the EU, covering the years 2007-2018. Results indicate that Cohesion spillovers from less developed regions to other regions exceed 40% of their initial EU support in some cases. In addition, spillovers from the more developed regions are equivalent to 24% of their initial EU support. This shows that the existing trade and investment linkages across the EU regions are strong and not only run from less developed to more developed regions but also vice versa. Our results are good news for the net paying regions in the EU. Taking into account capacity growth effects, Cohesion Policy spillovers might well be a multiple of the pure demand spillovers estimated in this paper. Thus, for net paying regions, Cohesion Policy is not only an act of European solidarity but also a rational long-run economic growth policy.
Topic:
Economics, International Political Economy, International Trade and Finance, European Union, Investment, and Economic Cooperation
Political Geography:
Europe

13. The Effects of the EU Cohesion Policy on Regional Economic Growth: Using Structural Equation Modelling for Impact Assessment

Author:
Stefan Jestl, Ambre Maucorps, and Roman Römisch
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This paper analyses the effects of the EU Cohesion Policy (CP) on the economic growth of 276 European NUTS-2 regions between 2008 and 2016. Using a structural equation model (SEM) consisting of both a measurement component (with two latent variables) and a structural component, we estimate the impact of CP funding on the growth of GDP per capita across EU regions. The estimation also enables us to predict changes in the growth of GDP per capita based on a scenario of CP funding reallocation between member states. Overcoming the limitations of traditional linear regression, SEM modelling proves to be a promising method for impact evaluation, also allowing for the inclusion of indirect causal paths and feedback loops to depict, for example, cross-border economic spillover effects.
Topic:
Economics, International Political Economy, European Union, Economic Growth, Investment, and Economic Cooperation
Political Geography:
Europe

14. Redefining the EU-China economic partnership: beyond reciprocity lies strategy

Author:
Tobias Gehrke
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
The EU-China economic relationship is transitioning to a new era. Years of soaring Chinese investments in Europe are increasingly met with unease by EU leaders. Beijing’s influence on the activities of its global economic actors have resulted in economic security concerns about critical infrastructure and national security on the continent. A hectic debate about security risks of Chinese technology companies and a new EU regulation on a common investment screening regime are evidence of an ongoing policy response to perceived growing risks from economic interdependence. Europe is right to acknowledge these risks. But Europe is also divided. Lacking common priorities for action makes individual policies vulnerable and insufficient. A new EU strategy on China must start at home. Of course, Member States’ political expediency is the Union’s eternal handicap. This policy brief offers three lines of action in which policy reform can support Europe’s resilience and reinforce the foundation of an EU strategy on China
Topic:
International Cooperation, European Union, Investment, Economic Cooperation, and Transition
Political Geography:
China, Europe, and Asia

15. Fostering Belgo-German Connectivity in the Heart of Europe

Author:
Alexander Mattelaer
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
On 18 March 2019 the fifth edition of the Belgo-German Conference took place in Brussels. Framed around the inter-related themes of energy, mobility and digitalization, the conference sought to provide a platform for dialogue between political leaders, diplomatic officials, and representatives from the private sector, academia and civil society. This European Policy Brief aims to illuminate the major topics that were discussed at the conference and put these into a wider context. The umbrella theme of connectivity in infrastructure speaks to the common ambition that Belgium and Germany share: propelling the European project forward – even when facing headwinds – by embracing increased economic interdependence.
Topic:
Energy Policy, Regional Cooperation, Bilateral Relations, Economic Cooperation, and Digitization
Political Geography:
Europe, Germany, and Belgium

16. Israel’s European Dilemma

Author:
Emmanuel Navon
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Israel should leverage its economic power and take advantage of the EU’s inner divisions, but it would not benefit from a divided Europe ruled by economic nationalists and anti-globalists aligned with Russia. To defend its national interests, Israel must develop ties with “rebellious” European governments, but only as a divide-and-rule tactic meant to break the Brussels consensus, not as a bond with forces that threaten to undermine free trade and the Atlantic alliance.
Topic:
Diplomacy, International Cooperation, European Union, Free Trade, and Economic Cooperation
Political Geography:
Russia, Europe, Middle East, and Israel

17. European Turkey and European Morocco: Two Identity Construction cases in the path to the EEC membership

Author:
Volkan Ipek and Selin Turkes-Kilic
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
Turkish Journal of Middle Eastern Studies
Institution:
Sakarya University (SAU)
Abstract:
This article analyzes Morocco’s and Turkey’s full membership application processes to the European Economic Community (EEC) in 1987 from an identity perspective. The construction of both Morocco’s and Turkey’s European-ness are explored alongside aspects of postcolonial and modernization theories rooted in the poststructuralist approach by taking official discourses of the political leaders in the two states at the time of application into account. In the conventional narratives of the establishment of their modern states, Morocco perceived Europe as its other due to the history of European colonialism, whereas Turkey perceived Europe as its other considering it a threat to its national unity prior to the establishment of the Republic in 1923. In spite of this, two states tried to add European-ness into their national identities through their application to the EEC in 1987. In this way, Morocco and Turkey aimed at demonstrating not why European but how much European they were. In Morocco’s case, an obligation for demonstrating one’s European- ness is explained through the lens of postcolonial theory, and in Turkey’s case, the modernization paradigm is applied. Departing from these theoretical standpoints, the study focuses on official European-ness discourses by Moroccan and Turkish leaders, which had taken place as dynamic processes. In this respect, the article unravels how Europe and European-ness that was once regarded as the other by Turkey and Morocco were tried to be included into Moroccan and Turkish national identities on the path to become a full member to the EEC.
Topic:
Post Colonialism, Regional Cooperation, Colonialism, Modernization, Economic Cooperation, and European Economic Community
Political Geography:
Africa, Europe, Turkey, Asia, and Morocco

18. Towards the future in the Three Seas Region

Author:
Izabela Albrycht
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
Launched in 2016, the Three Seas Initiative (3SI) is designed to build cooperation and interconnectivity between 12 CEE countries through new cross-border infrastructures. The aim of the region’s political leaders is to leverage the economic growth to the extent in which it Kitarović, President of the Republic of Croatia at the Third 3SI Summit in 2018. She added: “substantial projects, such as energy supply corridors and communications infrastructure, as well as modernization of our economies through an extension of transportation links, will allow for the full integration of Central can contribute to the EU’s greater prosperity and at the same time tighten transatlantic bonds. Let us wish the 3S region yet another good year in which the 3S countries will see the materialisation of hopes”, stated Kolinda Grabar- Europe with the remainder of our continent. It will annul the artificial, but still lingering division between old and new, West and East Europe and it will most definitely contribute to a higher level of prosperity of Europe as a whole.”
Topic:
International Trade and Finance, Regional Cooperation, and Economic Cooperation
Political Geography:
Europe, Balkans, Croatia, and Central Europe

19. Persuading Europe to pressure Iran

Author:
Eran Lerman
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Israel’s revelation of Iran’s nuclear deception aims to show the world that the 2015 deal with Iran must indeed be renegotiated in the interests of global peace.
Topic:
Diplomacy, International Cooperation, Military Strategy, European Union, Peace, and Economic Cooperation
Political Geography:
Europe, Iran, Middle East, and Israel

20. 10 reasons to tank the F-35 jet sale to Turkey

Author:
Efraim Inbar
Publication Date:
06-2018
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Turkey is no longer a reliable Western ally. Provision of the F-35 jet would strengthen Erdogan’s authoritarian Islamist regime and boost its capabilities for regional mischief.
Topic:
International Cooperation, Military Affairs, Authoritarianism, and Economic Cooperation
Political Geography:
Europe, Turkey, Middle East, Israel, Asia, North America, and United States of America