Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects

Sascha O. Becker, Peter Egger, Maximilian von Ehrlich · 2013 · American Economic Journal Economic Policy

Summary. EU regional transfer programs only benefit regions with sufficient human capital and strong institutions. The study finds that just 30 percent of recipient regions convert transfers into faster income growth, and 21 percent into increased investment. A region's absorptive capacity—its ability to effectively use funds—matters far more than the average program effect, with treatment outcomes varying dramatically across regions.

Read the original

Cite this article

Becker, S. O., Egger, P., & Ehrlich, M. V.. (2013). Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects. American Economic Journal Economic Policy. https://doi.org/10.1257/pol.5.4.29

@article{becker-2013-absorptive-capacity-growth-investment-effects,
  title   = {Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects},
  author  = {Sascha O. Becker and Peter Egger and Maximilian von Ehrlich},
  journal = {American Economic Journal Economic Policy},
  year    = {2013},
  doi     = {10.1257/pol.5.4.29},
  url     = {https://doi.org/10.1257/pol.5.4.29}
}

TY  - JOUR
TI  - Absorptive Capacity and the Growth and Investment Effects of Regional Transfers: A Regression Discontinuity Design with Heterogeneous Treatment Effects
AU  - Sascha O. Becker
AU  - Peter Egger
AU  - Maximilian von Ehrlich
JO  - American Economic Journal Economic Policy
PY  - 2013
DO  - 10.1257/pol.5.4.29
UR  - https://doi.org/10.1257/pol.5.4.29
ER  -

Details

DOI: 10.1257/pol.5.4.29
Countries: European Union
Categories: regional-innovation-systems, policy, funding, general-innovation
Added: 2026-04-28