The spillover effect of European Union funds between the regions of the new European Union members

Abstract As the differences between regions are more pronounced than among countries, NUTS 2 of new members that joined EU after 2000 considered. Due to presence externalities regions, Solow growth model using interregional is used. This modelled by spatial econometrics, method maximum likelihood. According previous research, effects European funds in on reducing disparities not unique, but contradictory. From mentioned research for members, we can conclude shows a positive effect rates. There noticeable lack analyzing impact funding 2008 crisis, including their mutual regional interaction. The aim determine as measured GDP per capita. paper an increase increases rates, thus contributing reduction disparities. funding, which mostly targeted at less developed represents opportunity and potential move closer old members. spillover key contribution funds, i.e. advantage application econometrics. Also, these spillovers have proven be important factor whose omission models estimated OLS leads bias. Regional should taken into account divisions policymakers, creating distribution next programming period. region itself without does contribute disparities, future opportunity, especially poorest such Bulgaria Romania.