Structural funding and intrastate regional disparities in post-communist countries

Abstract

The intent of this paper is to provide empirical evidence about associations between structural fund allocation in the Czech Republic’s micro- regions for the programming period 2007 to 2013, and intrastate regional disparities by considering the three traditional pillars of sustainable development. The results have mixed evidence, both supporting and not supporting various associations. Economically disadvantaged micro-regions had less structural fund allocation in the economic pillar of sustainable development. To the contrary, socially disadvantaged micro-regions were allocated more structural funds in the social pillar of sustainable development. Therefore, a compensatory effect in sustainable development was observed between economic and social pillars. Results in the environmental pillar were insignificant. The results in this paper provide an ambivalent conclusion regarding the contention that spatial distribution of structural funding actually contributes to a reduction in intrastate regional disparities at the micro-regional level. However, micro regions with better economic conditions, e.g. agglomeration economies, better human capital and patent activities – received more structural funding in total. © 2017, Universitatea Babes-Bolyai. All Rights Reserved.