The socio-economic impact of projects financed by the Cohesion Fund – A modelling approach: Introduction and summary, literature review, Vector auto-regression models

Summary:

The Commission entrusted the present study to the London School of Economics and Political Science in July 1995 in response to the provisions of the Cohesion Fund Regulation. These specify not only that individual projects should be thoroughly appraised before approval for assistance by the Cohesion Fund, but also that the Commission should report annually on the "economic and social impact of the Fund in the Member States and on economic and social cohesion in the Union". The study thus aims to fulfil the requirement for regular assessments to be made of the socio-economic impact of assisted investments on the beneficiary Member States and on the wider economy of the European Union.

The study shows, among many important results, that:

• there is a strong, positive relationship between public infrastructure investment and private investment in the Cohesion countries over the longer-term;
• infrastructure projects give rise to significant employment impacts both in the short-term and long-term;
• estimated regional income effects in some cases exceed those resulting from more traditional approaches to project appraisal such as cost-benefit analysis;
• important spillover effects are evident between the Cohesion countries and their neighbours

ESO Records

The socio-economic impact of projects financed by the Cohesion Fund – A modelling approach : Computable general equilibrium models, Models of explicit distribution dynamics (Volume II) https://www.europeansources.info/record/the-socio-economic-impact-of-projects-financed-by-the-cohesion-fund-a-modelling-approach-computable-general-equilibrium-models-models-of-explicit-distribution-dynamics/

The socio-economic impact of projects financed by the Cohesion Fund – A modelling approach: Data Report (Volume III) https://www.europeansources.info/record/the-socio-economic-impact-of-projects-financed-by-the-cohesion-fund-a-modelling-approach-data-report/

---