Structural funding and disadvantage of regions: Public and non-public beneficiaries

Considering the differences between public and non-public beneficiaries, the main aim of this paper is to evaluate the relationship between the disadvantage of Czech regions and the spatial distribution of EU structural funds in the programming period 2007-2013. The empirical results reveal negative and significant influence of socioeconomic disadvantage of regions on the amount of structural funds obtained by public beneficiaries. On the contrary, agglomeration economies are the statistically significant determinant of the amount of structural funds obtained by non-public beneficiaries. These conclusions are related to different absorption capacity of regions, regarding the number and size of projects. Overall, structural funds do not compensate for the disadvantage of regions, neither for public nor for non-public beneficiaries. © 2019 Vysoka Skola Ekonomicka. All rights reserved