The Role of EU Cohesion Funds in Shaping Economic Development in Czechia, Bulgaria, and Romania during the 2014–2020 Programming Period

This thesis focuses on the economic consequences of the European Union Cohesion Funds on Czechia, Bulgaria, and Romania’s development patterns during the period of 2014 to 2020. The analysis at national and NUTS-2 regional levels examines how structural funding steers national economic growth and regional convergence in the context of the EU. The objective of this research is to determine whether the EU Cohesion Funds have a significant influence on promoting economic development across the selected countries. To investigate this, the analysis relied on a panel dataset that assessed the relationships among EU funds and productivity, business activity, employment, and foreign direct investment (FDI), which are considered key drivers of economic performance. It is based on an entirely quantitative methodology with lagged independent variable models that are meant to reflect the inflow of funds and the effects of such funding on economic indicators over time. Eurostat, the Kohesio database, and the Cohesion Open Data Platform were used for analysis, providing regional economic indicators and data on EU Cohesion Fund allocation and distribution. The preliminary results of the analysis suggest that there exists a positive relationship between the allocation of Cohesion Funds and economic performance at both the country and regional levels. The effect is stronger in the more structurally challenged regions. The results also point to differences between countries in the impact of the funds, the level of institutional quality, and the absorption of the funds. This research contributes to the ongoing discussions aimed at better understanding the role of the EU Cohesion Policy in reducing regional development disparities among member countries.