Grants-in-aid and the prospect of re-election: The impact of EU funds on mayoral elections in Poland

We investigate whether grants-in-aid help the recipient government to get re-elected. We take Poland as our testing ground and analyze the impact of EU funds spent within a municipality on mayoral elections in 2010 and 2014. We employ an instrumental variables approach to account for the endogeneity...

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Pubblicato in:MAGKS - Joint Discussion Paper Series in Economics (Band 22-2018)
Autori principali: Banaszewska, Monika, Bischoff, Ivo
Natura: Articolo
Lingua:inglese
Pubblicazione: Philipps-Universität Marburg 2018
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Riassunto:We investigate whether grants-in-aid help the recipient government to get re-elected. We take Poland as our testing ground and analyze the impact of EU funds spent within a municipality on mayoral elections in 2010 and 2014. We employ an instrumental variables approach to account for the endogeneity of EU funds. Our results show that EU funds do not generally increase the mayors’ chance of reelection. We test whether the impact of EU funds is moderated by municipal characteristics. We find no moderating effect for the fiscal situation of municipalities but positive effects for human capital endowment and for the share of pro-European citizens. These results suggest that the political incentives inherent do not help to concentrate EU funds in regions where there is a particular need to foster economic development, nor do they help to direct funds to municipalities where the potential to reconcile EU sceptics is high.
Descrizione fisica:47 Seiten
ISSN:1867-3678
DOI:10.17192/es2024.0576