The asymmetric influence of structural funds on regional growth in Greece

In this paper we aim to explore the conditioning effect of structural funds (SF) on regional growth in Greece for the period 1994-2006 by detecting if the ability of regions to convert any financial aid into welfare gains is related to certain region-specific characteristics. The analysis shows that, albeit that important financial aid has been channelled to the less-developed regions, the most advanced regions seem to have benefited more from it. Furthermore, we divide the SF into expenditure categories and conclude that the SF have a positive impact on growth only for those regions in which the regions' endowments are related to the expenditure received. This interaction of the expenditure categories with the characteristics of the recipient region accentuates the role of the 'identity' of each region to the impact of SF on regional growth, thereby signifying valuable policy implications.