The Nexus Between European Funds, Economic Growth and Government Quality in the EU

Elena Cigu; Cosmin-Sorin Iacobuți; Ana-Maria Bercu

doi:10.17573/cepar.2025.1.06

Authors

Elena Cigu Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration, Romania https://orcid.org/0000-0003-3918-0603
Cosmin-Sorin Iacobuți Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration, Romania https://orcid.org/0009-0008-3540-9689
Ana-Maria Bercu Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration, Romania https://orcid.org/0000-0001-8954-8520

DOI:

https://doi.org/10.17573/cepar.2025.1.06

Keywords:

economic growth, European funds absorption, government quality

Abstract

The purpose of this paper is to identify the contextual associations between the absorption of European funds, economic growth, and the quality of governance. The structural funds of the European Union support the strengthening of the economies of its Member States. The efficient use of these funds is achieved through high-quality governance; however, efficient governance presupposes a stable and developed economy.
Design/Methodology/Approach: The methodological background comprises a qualitative sequential approach involving a literature review and empirical analysis that provide coherence and viability for the study. We mainly employ quantitative methods, including an econometric model based on panel data for European countries over the period 2007–2020, which represents a novel approach in the literature.
Findings: The empirical results indicate a positive relationship between the European funds absorption rate, economic growth, and institutional governance factors.
Originality/Value: The article may be considered a useful contribution to understanding the complex relationship between European funds, government quality, and economic growth, thus adding to the existing literature.

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