The Impact of LEADER Funding in Romania

Abstract

Established in 1991 as a European initiative to enhance innovation in rural areas, the LEADER programme became an important tool for the spread of sustainable local development actions in almost all regions of the EU. In Romania, although the programme has generated the implementation of many successful local projects since 2007, quantitative evaluations of its socio-economic impact are extremely limited. The aim of this paper is to evaluate whether LEADER funding has had any effect on the eligible territory of Romania, using multiple linear regression analysis with the evolution of demographic and socio-economic indicators for the 2017–2023 period. The results show that, over a certain amount of euros/ capita absorbed from LEADER at the administrative level (UAT), the positive dynamics of the statistical indicators is confirmed. This analysis represents quantitative proof of the LEADER programme’s added value, maintaining or increasing its European role in the future as a sustainable policy directed towards communities.