The role of European Union regional policy: lessons from a Greek Region

The Regional policy explores the causes of different levels of development between regions. The purpose of this Dissertation is to explore the effectiveness of European regional policy. The contribution of this study is showing the overtime progress of the assumptions of convergence of regional inequalities between EU regions. We investigate, using spatial econometrics and the method of Geographical Weighted Regression, whether there is convergence between regions and EU countries. - Firstly, it will be presented whether a particular spatial entity affects and is affected by neighbouring values. - Secondly, another contribution is the interpenetration of spatial inequalities and their correlation with the prevailing economic conditions. - Thirdly, the last contribution is the modeling of variables and the examination if similar values are affected by the geographical distance or prevailing economic conditions. The empirical part of this dissertation uses spatial statistics and spatial econometrics. Regional inequalities are measured in Greece and the countries of the European Union using four indicators. Two models of spatial econometrics that were used. In the first method, distance is measured by geographical criteria while in the second method, distance is measured by an economic factor (employment index). The results show differences between the two methods. This research responds to the following research questions: - Is it possible to reduce regional inequalities? - Is there any convergence between EU regions? - Are policies leading to convergence of regions? It should be noted, however, that a balance between regions cannot be achieved because any economic change in a region's production process and because of their interdependence will start a cumulative upward or downward movement for the remaining regions. Finally, the results of the empirical analysis show that the objectives of convergence between the regions have not been achieved