Efficiency on the Implementation of Structural Funds by European Regions: An Analysis of the Objective 1 Regions over the Period 2000-2006.

Given the large volume of resources employed in policies financed by the Structural Funds and the importance of the Objectives pursued, this paper seeks to perform an analysis of the efficiency of the application of these resources to increase productivity and employment by those regions classified as Objective 1 over the period 2000-2006. In the first place we are going to identify which are the most efficient regions by calculating both the level of efficiency according to the results obtained from the resources used (pure technical efficiency (PTE)) and the degree of efficiency according to their optimum production capacity (scale efficiency (SE)) and we have determine the “Reference Set” for inefficient regions. Finally, we will analyse the extent to which certain factors have repercussions on the efficiency such as country, geographical location and contribution of agriculture of GDP. The result indicates that the PTE of the regions are higher level although it does operate on an optimum scale. Furthermore, the country, geographical location and contribution of agriculture of GDP have significantly influences of PTE and SE. [ABSTRACT FROM AUTHOR]