Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/287756 
Year of Publication: 
2024
Series/Report no.: 
Kiel Working Paper No. 2266
Publisher: 
Kiel Institute for the World Economy (IfW Kiel), Kiel
Abstract: 
This paper shows that regional policies can decrease populist support. We focus on the "development objective" (Objective-1) of the European Regional Development Fund (ERDF), meant to support lagging-behind regions. For causal inference, we exploit three sources of quasi-exogenous variation in a Regression-Discontinuity-Design (RDD), a Difference-in-Differences framework (DiD), and with matching techniques. Using NUTS3-level panel data on the outcomes of elections to the EU parliament, observed over the period 1999-2019, we consistently find that Objective-1 transfers reduces the vote share of right-fringe parties by about 2.5 pp. Left-fringe party support is not affected. Complementary analyses of individual-level survey data from the Eurobarometer show that the European Regional Policy increases trust in democratic institutions and decreases discontent with the EU.
Subjects: 
Populism
Regional Policies
European Integration
Regression Discontinuity Design
JEL: 
D72
H54
R11
R58
Document Type: 
Working Paper

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