Abstract
The assessment of the impact of European Structural and Investment Funds (ESIF) on Portuguese local government and which factors determine it is important given the magnitude of funds involved. As part of this larger question, this paper considers whether the holistic sustainability of local authorities—as measured by a Council Sustainability Index—can influence the impact of ESIF on the performance of Portuguese councils and which factors best explain these performance differences. Using a geometric distance function jointly with the Hicks-Moorsteen index, we investigate and present a conclusion on the differential impact of ESIF on sustainable and non-sustainable Portuguese councils over the period 2000 to 2014. Our findings also suggest that ESIF should continue fostering economic and social development at the local level regardless of council size or regional location since overall development will flow from this economic and social structural adjustment strategy.
Highlights
As in many European countries, Portuguese local government is responsible for major public investments, as well as for a wide range of local services
Do significant differences exist between sustainable and non-sustainable councils with respect to the impact of EU funding programs? Using a rigorous model embodying a geometric distance function (GDF) and the Hicks-Moorsteen Index (HMI), we investigate the different impact of European Structural and Investment Funds (ESIF) on sustainable and non-sustainable Portuguese councils
In Portugal, public investment has seen an increase of competitiveness and an improvement in the quality of life made over the past three decades which would have been impossible without ESIF
Summary
As in many European countries, Portuguese local government is responsible for major public investments, as well as for a wide range of local services. A thorough survey on the 308 Portuguese councils over the period 2000 to 2014, corresponding to the two final European Structural and Investment Funds (ESIF) (ESIF III and National Strategic Reference Framework (NSRF)), identified those aspects of EU programs which improved the performance and sustainability of Portuguese local government, namely competitiveness, territory development, and education factors [5] It highlighted the significance of this impact given the context of major productivity divergences between countries [6] and increasing political integration to guarantee, in the medium term, economic and social cohesion between all European Countries [7]. European Structural Investment and Funds Impact on Municipal Performance and Sustainability
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