Is the JESSICA initiative truly repayable instrument? The Polish case study

Musiałkowska, Ida; Idczak, Piotr

doi:10.15611/pn.2018.536.13

Cited by 5 publications

(11 citation statements)

References 2 publications

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“…The same The Capacity of JESSICA Projects to Repay Loans Based on Own Revenues | 151 also refers to the LGA status -YES where an increase in LGA status is associated with an increase in the probability of generating revenues. These findings seem to contrast with an earlier study by (Musiałkowska & Idczak, 2018a) highlighting that the capacity of projects to generate revenues is higher when they are implemented by private entities. There is a possible explanation for this outcome.…”

Section: Resultscontrasting

confidence: 99%

“…Taking into account the assumption related to the meaning of category 'revenue-generating projects' (see footnote 2), it is likely to be that the number of the non-profit projects is even higher. Source: (Musiałkowska & Idczak, 2018a).…”

Section: Resultsmentioning

confidence: 99%

“…The values of the available funds under JESSICA differed among the regions. Wielkopolskie region allocated the biggest amount of 66.3 mln EUR, while Zachodniopomorskie region allocated the lowest amount that accounted for half of Wielkopolskie region allocation, namely 30 mln EUR (Musiałkowska & Idczak, 2018a). The projects of the highest values (and the highest value of the JESICA loan) were implemented in Zachodniopomorskie region, whereas the biggest differentiation in terms of the project values was observed in Pomorskie region (Figure 1).…”

Section: Literature Reviewmentioning

confidence: 97%

“…In the years 2007-2013, this initiative was applied in 11 EU countries, including Poland (European Commission, 2014). In all five Polish regions: Mazowieckie, Pomorskie, Śląskie, Wielkopolskie, and Zachodniopomorskie that decided to implement JESSICA, the EIB was a beneficiary of the measures of regional operational programmes and performed a function of the so-called holding fund that cooperated with the specialised Urban Development Funds (that is: Bank Gospodarstwa Krajowego -BGK, Bank Ochrony Środowiska -BOŚ and Bank Zachodni WBK S.A. -BZWBK S.A.), namely entities responsible for the selection of projects and providing cofinancing to them (Musiałkowska & Idczak, 2018a).…”

Section: Literature Reviewmentioning

confidence: 99%

“…We concentrate on this intuitively obvious issue, taking into account the fact that the basic tasks of the JESSICA initiative are to develop an effective process for supporting urban development by revolving funds and to enhance and accelerate a potential for new investments in urban areas. According to the preliminary rules, only projects that generate return flows are eligible for funding offered by this instrument and the repayment should be achieved either in the form of solely commercial returns or project revenues secured directly by investors from other sources (Musiałkowska & Idczak, 2018a). In our previous study we found out that not all projects bring revenues from the commercial returns and that the form of a beneficiary (public or private) matters.…”

Section: Introductionmentioning

confidence: 99%

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The Capacity of JESSICA Projects to Repay Loans Based on Own Revenues

Idczak¹,

Musiałkowska²

2019

EBER

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Objectives of the article are the following: to identify 1) similarity/ dissimilarity in Polish regions with regard to the implementation of JESSICA projects in terms of the size of JESSICA loans/ projects and the legal form of beneficiaries, 2) what factors have the biggest impact on the project capacities to generate revenues. Research Design & Methods: The authors used the logistic regression to build a model showing the association of the variables analysed on the dependent variable. In addition, to point out a relative importance from all possible orderings of explanatory variables and to show the most important one(s), ANOVA method was applied. Findings: Not all the projects co-financed under the JESSICA initiative bring revenues from their main operations. The legal form of a beneficiary plays an important role. Both projects implemented by companies and projects of a relatively high value increase the probability of generating revenues. Location of the project (capital city/ non-capital city of the region) is not significant with regard to capacities to generate revenues. Implications & Recommendations: JESSICA projects characterised with a high value and implemented by entities having the company status involve private capital and consequently generate capital backflows. They contribute to leverage effects and thereby raise the role of JESSICA as a powerful instrument aimed at rendering existing market failures. It seems that the results of the study might help to design the use of JESSICA resources in the current and the future EU financial perspective. Contribution & Value Added: The article sheds more light on a still under-researched area of the use of financial instruments in the EU Cohesion Policy. The analysis provides pioneering results and points out the vital issues for future research.

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Section: Resultscontrasting

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 97%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Capacity of JESSICA Projects to Repay Loans Based on Own Revenues

Idczak¹,

Musiałkowska²

2019

EBER

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Micro-economic effects of public funds on enterprises in Hungary

Nyikos

Béres²,

Laposa

2020

Regional Studies, Regional Science

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To enhance the effectiveness of and return on public investments, using financial instruments in addition to grants has lately become an increasingly preferred policy instrument choice in Central and Eastern Europe. The paper examines the impact different financial tools bring about at a micro-level. This enables recommendations for policy-makers to be produced on the type of assistance that could be of best use to improve access to finance for micro-, small and medium-sized enterprises, and thus achieve long-term, sustainable economic growth. The analysis is based on counterfactual evaluation and difference-indifferences. The findings indicate that the use of European Union funds (both grants and financial instruments) has a beneficial influence on employment and sales. However, the results also illustrate that in order to achieve the goal of higher impact and certain productivity effects, subsidies should be allocated to the initially less productive small firms in the less developed regions. Another important outcome is that, to some extent, financing through financial instruments has more direct relevance to advanced productivity, and due to their revolving nature, they generate more positive impact on the Hungarian economy than do grants.

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The The territorial impacts of JESSICA projects in municipalities: evidence from the city of Poznań

Idczak

Mrozik

2021

10.14746/rpeis

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This paper sets out to explore the contribution of JESSICA projects to enhancing the territorialcohesion of urban areas. We apply a slightly modified TARGET_TIA methodology to assess theterritorial impacts of those projects in the city of Poznań. It is found that the JESSICA projectsbrought about positive territorial effects in deprived urban areas, however, their impacts arequite varied. More exactly, the results demonstrate that projects which most closely addressedthe specific needs of the particular urban areas make the greatest contribution to improving theterritorial cohesion of a city. It is also suggested that the complexity of JESSICA projects shouldhave a higher priority in granting a JESSICA loan.

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Is the JESSICA initiative truly repayable instrument? The Polish case study

Cited by 5 publications

References 2 publications

The Capacity of JESSICA Projects to Repay Loans Based on Own Revenues

The Capacity of JESSICA Projects to Repay Loans Based on Own Revenues

Micro-economic effects of public funds on enterprises in Hungary

The The territorial impacts of JESSICA projects in municipalities: evidence from the city of Poznań

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