Cohesion Policy Research Articles

The Impact of Monetary Policy, Inflation Rates, and Foreign Direct Investment on Economic Growth in Developing Countries

This study explores the intricate relationships between monetary policy, inflation rates, and foreign direct investment (FDI) and their collective impact on economic growth in developing countries. Utilizing a comprehensive review of existing literature, this research aims to provide a nuanced understanding of how these macroeconomic factors interact to influence economic development. Monetary policy, often implemented through adjustments in interest rates and money supply, is critical in shaping economic stability and growth. The study reveals that effective monetary policy in developing countries can stimulate economic activity by fostering an environment conducive to investment and consumption. However, the impact of such policies is contingent upon the stability and credibility of the governing institutions, which are often variable in developing regions. Inflation rates, which reflect the general rise in price levels, were found to have a complex relationship with economic growth. Moderate inflation can stimulate spending and investment by reducing the real burden of debt and encouraging consumption. In contrast, high inflation can erode purchasing power and deter both domestic and foreign investment, thereby stifling growth. This study underscores the importance of maintaining inflation within a manageable range to support sustainable economic growth. Foreign direct investment is identified as a key driver of economic development, providing capital, technology transfer, and employment opportunities. The research highlights that FDI can significantly enhance economic growth by supplementing domestic capital, improving infrastructure, and fostering industrial diversification. However, the benefits of FDI are maximized when complemented by stable economic policies and a favorable investment climate. In conclusion, the interplay between monetary policy, inflation, and FDI is crucial in shaping the economic trajectories of developing countries. The study suggests that balanced and coherent policy frameworks are essential to harnessing these factors for sustained economic growth. Future research should explore country-specific dynamics to better understand the differential impacts across various developing economies.

The Past, Present, and Future of Cross-Border Cooperation between Municipalities in the South Bohemian Region: A Case Study

The aim of this study is to provide a comprehensive view of matters of cross-border cooperation, with the main emphasis on the typology and development of structures supporting cross-border cooperation in a selected region of the Czech Republic (South Bohemian Region). The study focuses on the analysis of changes in the methods and ways of cooperation of municipalities in the programming periods 2007–2013 and 2014–2020 (Euroregions, cross-border impulse centers, European territorial cooperation groups, partner and friendly cities, etc.). The research not only analyzes the actual development of cooperation between municipalities in the region studied, but also identifies the prerequisites of and barriers to cross-border cooperation. The data obtained show a significant decrease in the interest of municipalities in cross-border cooperation within the conditions of the Czech Republic in recent years. The current situation with regard to the existence and development of cross-border cooperation in 2024 is not very satisfactory, although it is paradoxically an area strongly supported by the EU Cohesion Policy. This study employs a mixed-methods approach, combining both qualitative and quantitative research methods to provide a comprehensive analysis of cross-border cooperation in the South Bohemian Region. A thorough review of existing literature on cross-border cooperation and related policies was conducted to establish a theoretical framework. The practical part of the study is based on field research carried out by the author in 2007–2013 and 2014–2020. This research examined the level of cooperation between the 623 municipalities in the South Bohemian Region (in 2016, there were 624 municipalities in the region). In the case of cross-border impulse centers, the input data were represented by e-mail and telephone inquiries to representatives of individual municipalities and the websites of Euroregions. To conduct a comprehensive study on cross-border cooperation between municipalities in the South Bohemian Region, logical and scientific methods were used. Universal methods of logic ensured the correctness and orderliness of the thought process, with abstraction identifying key elements. Synthesis was used to divide the study into parts, analyze them in detail, and integrate them into a comprehensive analysis. Scientific methods included analysis to examine the current status and frameworks of cross-border cooperation and comparison to identify similarities or differences between the Czech Republic and neighboring countries.

Towards an Inclusive Education Policy for Sustainability: Advancing the ‘Educating for Gross National Happiness’ Initiative in Bhutan

Education policies are often critiqued for short-sightedness and increasingly contended for their unsustainability. In the face of a bipolar characterisation of educational goals for economic utilitarianism and humanism with spiritual gratification, this study examines Bhutan’s Educating for Gross National Happiness (EGNH) as a policy tool. Aiming to understand whether EGNH is an inclusive, holistic, and sustainable policy instrument, this study pivots on coalesced methodological approaches of deliberative policy analysis, documentary policy reviews, and comparative policy analysis. The research design included examining the effectiveness and sustainability of the EGNH initiative through the lens of policy design. The main findings reveal that external and internal factors such as foreign policy influences, inconsistent internal policy interventions, interferences by party politics, weak policy coherence, and a lack of a comprehensive policy framework are the principal reasons for unsustainable policy gaps. This study offers valuable insights with a proposal for a comprehensive and dynamic framework to shape the future of education in the spirit of sustainability.

European funds and the dynamics of economic growth among EU regions: A spatial modelling approach

Contemporary development policy concentrates predominantly on reducing noticeable economic differences in a spatial system, and an important role in this respect is played by EU Cohesion Policy. Owing to the considerable scale of financial exposure of Cohesion Policy, the assessment of effectiveness of the implemented measures and their greater reliance on evidence are of major significance. Despite numerous attempts to empirically verify the effects of EU funds spending, the problem remains unresolved, and the results of recent studies lead frequently to ambiguous conclusions. The article aims to verify the β-convergence process in EU regions in the years 2007–2015 allowing for the impact of the received EU funds and the spatial effects determining economic growth. In the research, use was made of a covergence approach consisting in the regression modelling of per capita GDP growth. Spatial econometrics methods were applied, by adding variables determining spatial interactions that can influence the economic growth rate to the specification of the estimated models. The estimated econometric models show that in the years 2007–2015 EU funds positively affected economic growth. At the same time, the process of reducing economic disparities between EU regions was observed. Moreover, the existence of spatial effects for a dependent variable was confirmed. The results also show that the value of the EU funds received in the surrounding area generally did not translate into the dynamics of growth in a given location. The research presented is one of the few in which spatial interaction was verified by using weights matrices based on contiguity, distance, flows and affiliation.

Policy coherence assessment of water, energy, and food resources policies in the Tana River Basin, Kenya

Water, energy, and food resources are closely related in the water-energy-food (WEF) nexus, a tightly connected system in which impacts in one sector leads to changes in the other sectors. The WEF nexus approach studies these interactions to better understand their connections and implications across sectors, and is focused on making research practicable for policy. There is a clear lack of policy coherence studies to provide practical recommendations to achieve integrated resources management. This is true in the Tana River Basin (TRB), which provides abundant water, energy and food resources to the national economy and development of Kenya. This work carried out a WEF policy coherence assessment of the Tana River Basin. Results show that there are synergies and trade-offs across all resources sectors and their policy objectives. Water policies (e.g. to secure water availability) are generally evaluated as win-win, thus being supportive of attainment of goals in other policy sectors. Food policies (e.g. to develop the agricultural sector) show the highest number of trade-offs, suggesting these policies could be redesigned to minimise the trade-offs with other resource policies. This work highlights specifically which policies are relatively more or less supportive for holistic resources management in the TRB. In particular, the only TRB-level policy analysed (which is cross-resource in its ambition) shows synergies with national policy, offering opportunity for leveraging benefits and increasing implementation efficiency across resources. Strengthened cross-sectoral collaboration, joint workshops, and the establishment of a national cross-sectoral taskforce to develop aligned policies are recommended. This work provides a basis for similar studies across Africa, and promotes research that is of practical relevance.

Estimation of the coefficient of permeability as an example of the application of the Random Forest algorithm in Civil Engineering

A new world record for crude steel production was recorded in 2021, which increased by 3.8% over 2020. This also affected the amount of slag produced with this production. Total waste from industrial and construction production throughout the European Union accounts for as much as 48%. Therefore, waste management should provide for the recovery of as many resources as possible. European Union strategies in line with the circular economy objectives focus on ensuring policy coherence in the areas of climate, energy efficiency, construction and demolition waste management and resource efficiency. Slags are a material of interest to researchers in terms of their use in construction. Slags, on the one hand, are materials that are becoming better understood on the other hand, we are making sure of the heterogeneity of these materials. The characteristics of physical properties of slags are influenced by many factors, including the furnace split in which they are produced. This prompts the search for tools to help determine the parameters of slags based on already available data. The study aimed to verify the hypothesis that it is possible to determine the parameter of the filtration coefficient, relevant to applications in earth structures using the machine learning algorithm – Random Forest. In the study, two types of material were analysed: blast furnace slag and furnace slag. The results of the analysis yielded a high coefficient of determination (R2) – 0.84–0.92. This leads us to believe that the algorithm may prove useful in determining filtration parameters in slags.

The impact of European regional cohesion policy on NUTS 3 disparities

The impact of European regional cohesion policy on NUTS 3 disparities

Unravelling the role of renewable energy, information and communication technology and agricultural credit for sustainable agricultural productivity in developing countries

ABSTRACT Enhancing agricultural productivity in developing countries is crucial for attaining the sustainable development goal 2.4 by 2030 through integrating information and communication technology (ICT) and renewable energy. Thus, this study investigates the role of ICT, renewable energy, and agricultural credit in enhancing agricultural productivity in developing countries from 2000 to 2021. This study has used the ‘Driscoll-Kraay and the Method of Moments Quantile Regression’ for robust empirical analysis. The estimated results indicate that renewable energy, ICT, and agricultural credit can enhance agricultural productivity in developing countries. The robustness analysis, however, indicates that the moderation effects of the interaction of ICT with renewable energy and agricultural credit with ICT and renewable energy have a weak and insignificant effect on agricultural productivity over the increasing quantiles. From a policy viewpoint, it is suggested that coherent and effective policies be implemented to encourage the advancement of formal credit institutions to bridge the gap between farmers and lending institutions offering flexible lending options to farmers. Thus, this helps farmers to access and deploy modern technologies and renewable energy in the agricultural field, which ensures sustainable agricultural practices to foster agricultural productivity while enriching environmental quality in developing countries.

Insights into the spatial distribution of global, national, and subnational greenhouse gas emissions in the Emissions Database for Global Atmospheric Research (EDGAR v8.0)

Abstract. To mitigate the impact of greenhouse gas (GHG) and air pollutant emissions, it is of utmost importance to understand where emissions occur. In the real world, atmospheric pollutants are produced by various human activities from point sources (e.g. power plants and industrial facilities) but also from diffuse sources (e.g. residential activities and agriculture). However, as tracking all these single sources of emissions is practically impossible, emission inventories are typically compiled using national-level statistics by sector, which are then downscaled at the grid-cell level using spatial information. In this work, we develop high-spatial-resolution proxies for use in downscaling the national emission totals for all world countries provided by the Emissions Database for Global Atmospheric Research (EDGAR). In particular, in this paper, we present the latest EDGAR v8.0 GHG, which provides readily available emission data at different levels of spatial granularity, obtained from a consistently developed GHG emission database. This has been achieved through the improvement and development of high-resolution spatial proxies that allow for a more precise allocation of emissions over the globe. A key novelty of this work is the potential to analyse subnational GHG emissions over the European territory and also over the United States, China, India, and other high-emitting countries. These data not only meet the needs of atmospheric modellers but can also inform policymakers working in the field of climate change mitigation. For example, the EDGAR GHG emissions at the NUTS 2 level (Nomenclature of Territorial Units for Statistics level 2) over Europe contribute to the development of EU cohesion policies, identifying the progress of each region towards achieving the carbon neutrality target and providing insights into the highest-emitting sectors. The data can be accessed at https://doi.org/10.2905/b54d8149-2864-4fb9-96b9-5fd3a020c224 specifically for EDGAR v8.0 (Crippa et al., 2023a) and https://doi.org/10.2905/D67EEDA8-C03E-4421-95D0-0ADC460B9658 for the subnational dataset (Crippa et al., 2023b).

Finding a role for Britain in the new global order

Abstract Britain is no longer a superpower. It is now among many ‘middle powers’ in a multi-aligned world. In developing a coherent British foreign policy, we must understand where Britain started, what Britain wants, who Britain stands with, and what Britain can afford.

Smart mix politics: business actors in the formulation of global supply chain regulation

The European Union and other advanced economies are turning to mandatory due diligence regulation to address environmental and human rights risks in their global supply chains. This shift is accompanied by calls for ‘smart regulation’ that combines public legislation with private governance instruments and new supporting measures in the producer countries of the Global South. We study the smart regulation agenda in the case of the European Union Deforestation Regulation. We reveal how its progressive rhetoric masks a conservative undertone as business actors and their civil society partners aim to safeguard their vested interests in the age of public supply chain regulation. However, by tracing their lobbying efforts throughout the policy formulation process, we show how this does not imply en bloc support for voluntary, softer forms of regulation. Moreover, these actors exhibit varying motivations and preferences for involving Southern actors in such a mix. Consequently, rather than forming a cohesive policy coalition, their preferences span from conservative to progressive, resulting in new alliances and divisions in this time of regulatory change. By untangling the complexities of ‘smart mix politics’, this article advances critical research into the evolving role, positioning, and influence of business actors in global supply chain governance.

Shaping Sustainable Futures: Public Policies and Renewable Energy Insights Based on Global Bibliometric Analysis

The paradigm of sustainable energy is gaining ground at the historical juncture of the present worldwide push for sustainable development. This is being driven by the latest technological advancements and by a maturing process of public policy evolution toward support for a sustainable energy transition. This paper analyzes, with the support of bibliometric analysis, the specialized literature in order to capture the main themes of interest, as well as their evolution, thus offering a panoramic view of research trends and the significance of implementing correct environmental measures and policies. Covering the period from 1991 to 2024, our exploration filters 2990 articles from the Web of Science database using a query that intersects “sustainable energy”, “renewable energy”, and “sustainable development”, with a nuanced consideration of the political landscape that shapes these domains. Using the advanced capabilities of the R program, the methodology employed facilitates a nuanced workflow of extraction and analysis, allowing for a detailed examination of the proliferation of research over the decades. This paper provides significant results, demonstrating the increasing impact of research through international collaborations, the importance of high-impact journals on sustainability policies, and the growing focus on “renewable energy” and “CO2 emissions”. The analysis of the relevance of term groups in environmental policy development and the correlation between economic growth and CO2 emissions confirms emerging trends. Furthermore, critical directions for future research and the necessity for formulating and implementing coherent sustainability policies are highlighted.

Financial constraints prediction to lead socio-economic development: An application of neural networks to the Italian market

This study applies a neural network framework to optimize the classification of firms and to predict their difficulties in collecting external financial resources in the short term. In detail, we adopt replicated bootstrapped algorithms optimized on sensitivity and specificity as error measures and we propose a comparative analysis to identify the best-performing one. According to our results, the Conjugate gradient backpropagation with Fletcher-Reeves updates (i.e., CGF) is the best-performing algorithm, with sensitivity equal to 74.41 % and specificity equal to 70.11 %. Then, we use this algorithm and its weights to provide a classification of the Italian manufacturing industry in 2019, identifying the geographical areas in which firms under financial constraints are located, as well as the most critical industrial sectors. Based on this evidence, and considering the implementation of a cohesion policy, we highlight interventions by policy makers to support firms’ access to the capital market, fostering their investments and the consequent socio-economic development.

Economic Policies and Their Influence on Livestock Market Dynamics

Purpose: The general objective of the study was to explore the economic policies and their influence on livestock market dynamics. Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library. Findings: The findings reveal that there exists a contextual and methodological gap relating to economic policies and their influence on livestock market dynamics. Preliminary empirical review revealed that fiscal policies, such as subsidies and tax incentives, play a crucial role in reducing production costs and stabilizing market supply. Likewise, monetary policies, including interest rate adjustments, influence investment and innovation within the sector. Trade policies, such as tariffs and free trade agreements, affect market competitiveness and access to international markets. Regulatory policies concerning animal health and environmental protection ensure product quality and consumer confidence. The study emphasizes the need for balanced and well-designed policies across all these areas to support the sustainable growth of the livestock industry. Unique Contribution to Theory, Practice and Policy: Keynesian Economic Theory, Neoclassical Economic Theory and Institutional Economic Theory may be used to anchor future studies on economic policies and their influence on livestock market dynamics. The study significantly advances theoretical understanding by elucidating the intricate relationship between economic policies and livestock market dynamics. It recommends further exploration into the interplay of fiscal, monetary, trade, and regulatory policies to develop comprehensive models predicting market behavior accurately. Practically, the study advises livestock producers to adopt adaptive management practices, staying informed about policy changes and implementing flexible business strategies. Industry associations are urged to disseminate policy information and support farmers in navigating shifts. From a policy standpoint, coherence, targeting, and responsiveness to sectoral needs are underscored, advocating for a holistic approach to policy design. Fiscal policies should support short-term stability and long-term sustainability, targeting critical areas like feed costs and infrastructure. Monetary policies should balance investment stimulation with inflation control, while trade and regulatory policies should negotiate balanced agreements and stringent standards to ensure competitiveness and safety in the global market. Keywords: Economic Policies, Livestock Market Dynamics, Fiscal Policies, Monetary Policies, Trade Policies, Adaptive Management Practices, Industry Associations, Policy Coherence

Beyond GDP: assessing the impact of the 2007–13 EU Cohesion Policy

ABSTRACT In this paper, we present new evidence on the European Union’s (EU) Cohesion Policy’s last concluded programming period (2007–13). We depart from the broadly used gross domestic product (GDP) growth approach and evaluate the multidimensional impact of EU Structural Funds on a large battery of regional indicators, including economic, educational, health, social and environmental outcomes. This comprehensive analysis shows an overall almost null effect of the policy. Furthermore, we dig deeper into the heterogeneity of the effect due to the quality of local institutions, human capital and urbanisation on the policy’s effectiveness. The results suggest that these characteristics may influence the relationship between Structural Funds and various economic, social and accessibility outcomes. Conversely, the lack of impact on environmental outcomes is much more general and could be attributed to the unpreparedness of the policy design, which was specifically aligned with the new objectives only in the subsequent programming period.

Coordinative Europeanization as a response to crisis: what lessons from the RRF for future EU cohesion policy?

AbstractA considerable amount of literature has been devoted to analysing the genesis, rationale and modus operandi of the NGEU and RRF. However, not much attention has been paid to the practical implications of the RRF, and potential lesson-drawing, for established EU policies. EU cohesion policy is particularly salient in this respect, given the RRF’s general objective of contributing to economic, social and territorial cohesion and the current discussions about the RRF serving as a model for future cohesion policy, to improve the policy’s effectiveness, rationalise spending in view of future enlargements and better tie EU funding with reforms. Starting with a comparison between the delivery arrangements of EU cohesion policy and of the RRF, the study identifies and tests four expectations about their timing and absorption, possible displacement effects, administrative burden, and the impacts to be achieved, and tackles the following research questions: is it realistic to expect the RRF and cohesion policy to work synergistically, given the diversity in their delivery arrangements? Is the RRF proving sufficiently effective and simple, to represent a good model for future EU cohesion policy? Could the coordinative Europeanization that is typical of the RRF be a viable decision-making and implementation mode beyond emergency?

System Reform: The Ever-Elusive Quest—An Australian Study of How System Middle Leaders’ Role Enactment Influences the Attainment of Policy Coherence

Within an educational context, the current aim of policy translation is to achieve policy coherence by strategically and structurally aligning components, enabling whole system reform. While acknowledging the importance of this coherence conceptualisation, the current literature perspective primarily emphasises message conveyance, and lacks a dimension that identifies policy coherence as the result of how individuals, including middle leaders, interpret and translate policy into actions, both individually and collectively. System middle leaders occupy a unique position within organisational structures, as they bridge the gap between executive system leaders and school- based leaders. To investigate how policy is interpreted and translated within their roles and the impact this has on attaining policy coherence, this study employed an interpretivist approach to exploratory case study methodology, grounded in a review of authoritative literature. The aim was twofold; first, to enhance understanding of policy coherence development at the system middle level by exploring the role enactment of system middle leaders within a large Australian government education system; and second, to examine the interconnectedness and impact of leaders’ role enactment on policy coherence for system reform. Findings suggest that achieving policy coherence is hindered by a lack of role clarity among system leaders, in relation to policy implementation, stemming from the inconsistent interpretation and translation of policy into system strategy documentation and a deficiency in formal policy interpretation and role induction practices. As a result, individual system leaders often turn to informal policy interpretations and interactions with peers to clarify roles, leading to role tensions, accountability ambiguity and partial policy implementation. As a result, this study concludes that the integration of role theory, policy implementation theory and organisational alignment theory offers an interpretivist insight into the development of policy coherence for system reform, illuminating a theoretical pathway and practical recommendations for systems to attain policy coherence.

An Overview of Implementation of EU Funds in the 2014-2020 Period of Cohesion Policy

Abstract This article explores the implementation of EU funds in the 2014-2020 period of the Cohesion Policy, providing a broad perspective on how Member States have managed and applied these resources to reduce economic and social disparities. In a context where EU cohesion policy has adapted to economic and social changes, we analyse its evolution, management structures and the impact of investments on regional development. Through a review of the literature, we examine how researchers have approached this theme, from implementation structures to the concrete impact on communities. This article also aims to provide an insight into the lessons learnt over the period and explore their implications for future EU cohesion policies.

Cohesion Policy Dedicated to Human Capital: A Comparative Analysis of ESF Funded Operational Programs in Portugal and Romania

Abstract The Cohesion Policy, among the earliest policies established by the European Community, constitutes a significant portion of the EU budget, as it accounts for one third. It is structured through various instruments, among which the European Social Fund, whose aim is to support initiatives and programs focused on lifelong learning, employment, social integration, and broader to combat discrimination and enhance human capital. As a driver of development, human capital also stays under the influence of other factors that make a mixture of the educational system, the labor market, economic development and social, historical, contextual or either regulatory framework present in each country. The aim of Cohesion policy is to foster sustainable development and lower disparities between Member States. The last financing cycle has just ended in 2023 and preliminary achievements are available for operational programs implemented during 2014-2020. The attempt of the present study was to gain perspective over the results Romania registered as compared to other Member States and comparison was conducted with the achievements Portugal reported. Notable variations have been emphasized regarding program participation and the benefits experienced by participants. Additionally, insights and best practices have been derived from contrasting approaches employed by the two countries, which played a role in shaping the outcomes.

Challenges of Cohesion Policy at the Level of the European Union - Simplification Tools

Abstract Economic and social cohesion ensures security among the priorities of the European Union, being among the key objectives of European and national policies. Therefore, the center-periphery development model specific to the European economy emphasized the need for public interventions to favor regional growth and convergence, highlighting the importance and complexity of the European cohesion policy. This article starts from the empirical study of cohesion policies at the European level and has as its main purpose the determination of simplification solutions and their implementation in favor of the member states. Among the main scientific research methods used in order to elaborate the paper, we can mention: the comparison method, which was used especially to highlight the differences between the socio-economic situation of the regions and the member states, which joined the European Union in different waves; the historical method - was used to capture the evolution of the Cohesion Policy, the descriptive method - was used to present the programming periods of the Cohesion Policy within the European Union. It can be observed that, at the level of the European Union, the need to coordinate, standardize and simplify the cohesion policy is an often-discussed topic, with the constant aim of identifying new methods to make this policy more efficient. In this context, the new regulations establish tools to ease the life of the executing authorities and beneficiaries, such as, among others: clearer eligibility conditions, simplification of reporting and audit checks, reduction of administrative burdens, unification of rules.