Why Do Some Regions in Europe Have a Higher Quality of Government?

Charron, Nicholas; Lapuente, Víctor

doi:10.1017/s0022381613000510

Cited by 110 publications

(92 citation statements)

References 35 publications

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“…Recent analyses at the regional level in the EU uncovered an important sub-national dimension that can partly explain the observed within-country divergences in economic performance (Charron et al 2012, Charron, Lapuente 2013, Rodríguez-Pose 2013. It is then important to include in the analysis a measure of quality of governance at the regional level.…”

Section: Datamentioning

confidence: 99%

Tree-based approaches for understanding growth patterns in the European regions

Annoni

2016

REGION

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Abstract. We run an empirical analysis to understand the main drivers of economic growth in the European Union (EU) regions in the past decade. The analysis maintains the traditional factors of growth used in the literature on regional growth -stage of development, population agglomeration, transport infrastructure, human capital, labor market and research and innovation -and incorporates the institutional quality and two variables which reflect the macroeconomic conditions in which the regions operate. Given the scarcity of reliable and comparable regional data at the EU level, the starting point of the analysis was devoted to build reliable and consistent panel data on potential factors of growth. Two non-parametric, decision-tree techniques, randomized Classification and Regression Tree and Multivariate Adaptive Regression Splines, are employed for their ability to address data complexities such as non-linearity and interaction effects, which are generally a challenge for more traditional statistical procedures such as linear regression. Results show that the dependence of growth rates on the factors included is clearly non-linear with important factor interactions. This means that growth is determined by the simultaneous presence of multiple stimulus factors rather than the presence of a single area of excellence. Results also confirm the critical importance of the macroeconomic framework together with human capital as major drivers of economic growth. This is overall in line with most of the economic literature, which has persistently underlined the major role of these factors on economic growth but with the novelty that the macroeconomic conditions are here incorporated. Human capital also has an important role, with low-skilled labor supply having a higher detrimental effect than the conducive one of high-skilled labor supply. Other important factors are the quality of governance for most developed economies and, in line with the neoclassical growth theory, the stage of development in particular for less developed economies. The evidence given by the model about the impact of other factors on economic growth such as those on the quality of infrastructure or the level of innovation is more limited and inconclusive. The analysis conclusions support the reinforcement of the EU economic governance and the conditionality mechanisms set in the new architecture of the EU regional funds * The authors are grateful to the members of the Economic Analysis Unit of the Directorate General for Regional and Urban Policy, European Commission, for scientific guidance and helpful discussion throughout the analysis. A special thank goes to Beatriz Torighelli, for her essential input in data collection and preliminary data manipulation, and Marina Mastrostefano, who provided insight and expertise that greatly assisted the research and the interpretation of results. The information and views set out in the publication are those of the authors and do not reflect the official opinion of the European Commission.23 24 P. Annoni, ...

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Section: Datamentioning

confidence: 99%

Tree-based approaches for understanding growth patterns in the European regions

Annoni

2016

REGION

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“…Our preference for this index was motivated by the large panel dimension and the high within‐country variation with respect to other indexes (Nifo and Vecchione, ). This index shows a high correlation (0.79) with the survey‐based European Quality of Government index (Charron and Lapuente, ), which has been used in cohesion policy studies (Rodríguez‐Pose and Garcilazo, ). From Figure b, we see high IQI are found in central and northern regions, while regions located in the south report low IQI values.…”

Section: Theoretical Background and Related Literaturementioning

confidence: 98%

Did the Governance of EU Funds Help Italian Regional Labour Markets during the Great Recession?

Arbolino

Marani

2019

J of Common Market Studies

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European and national policy‐makers have highlighted the role of the cohesion policy in smoothing the effects of the crisis during the programme period 2007–13. To support these claims, however, specific evidence is needed. This article studied the relations between the absorption of the EU funds and regional labour markets in Italian regions during the Great Recession. By applying different panel data models to new data on cohesion policy, three main results were achieved. We found that the cohesion policy made a contribution to the resilience of Italian regional labour markets. Yet the short‐term consequences of the cohesion policy on regional economies were conditional on the heterogeneous quality of regional institutions. We also found that the policy changes introduced in Italy during the crisis increased the effectiveness of the cohesion policy. The analysis was controlled for endogeneity issues and alternative specifications.

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“…In a similar vein, Keech and Munger (2015, p. 11) emphasize meritocracy, recruitment and promotion, and autonomy as requirements for high-quality administrative institutions. A synthesis of proxies for quality of government has been proposed by Charron and Lapuente (2013) and Charron, Dijkstra, and Lapuente (2014). A synthesis of proxies for quality of government has been proposed by Charron and Lapuente (2013) and Charron, Dijkstra, and Lapuente (2014).…”

Section: Institutions Governance and Quality Of Governmentmentioning

confidence: 99%

Do government formation deadlocks really damage economic growth? Evidence from history's longest period of government formation impasse

Albalate

Bel

2019

Governance

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Several countries have experienced lengthy periods of government formation deadlock in recent years, as they have sought to form a new government. This study examines whether government formation deadlocks damage a country's economy. To do so, we analyze the case of Belgium, which took a record 541 days to create a post‐election government, following the June 2010 federal elections. Employing the synthetic control method, our results show that the Belgium economy did not suffer an economic toll; on the contrary, gross domestic product per capita growth was higher than would have otherwise been expected. As such, our evidence contradicts frequent claims that long periods of government formation deadlock negatively affect an economy.

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Why Do Some Regions in Europe Have a Higher Quality of Government?

Cited by 110 publications

References 35 publications

Tree-based approaches for understanding growth patterns in the European regions

Tree-based approaches for understanding growth patterns in the European regions

Did the Governance of EU Funds Help Italian Regional Labour Markets during the Great Recession?

Do government formation deadlocks really damage economic growth? Evidence from history's longest period of government formation impasse

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