Contribution of EU Cohesion Policy to Regional Growth: Evidence from V4 Countries*

The EU Cohesion Policy is one of the European Union's key policy instruments for reducing economic and social disparities among its regions. The paper evaluates the policy contribution to regional economic growth in V4 (Visegrad Four) countries. The study establishes a significant variation in ESIF (European Structural and Investment Funds) distribution at the NUTS2 (Nomenclature of Territorial Units for Statistics) level within the V4 regions over 2000–2018. It suggests that ESIF absorption was not evenly distributed across regions within the V4 countries. This finding indicates that regional disparities in ESIF distribution may have contributed to economic imbalances within the countries. Secondly, a causal link between regional growth and ESIF absorption is identified. Along with other covariates, the use of the ESIF shows a statistically significant, although very modest, effect on the economic growth of V4 countries. Finally, the assumption of cross-country growth dispersion is investigated. The research results suggest statistically significant regional growth differences between Czechia and Slovakia on the one hand and Poland and Hungary on the other. It implies that the impact of ESIF absorption on economic growth may have varied among these V4 countries, potentially due to differences in policy implementation, economic structures or other factors.