The Role of European Union Funds in Local Investment Policy: Evidence from Łodzkie Region
The Role of European Union Funds in Local Investment Policy: Evidence from Łodzkie Region

Summary/Abstract: Effective investment policy executed by local governments improves the standard of living for residents and stimulates socio- economic development of a commune. After joining the European Union (EU) in 2004, Polish local governments (as well as all other accessing countries) gained a new source of financing for the development of local infrastructure. The article focuses on the role of EU structural among other sources of financing communes’ investment policy. We explore this issue within a case study of one of the Polish regions. The results confirm that EU structural funds have become an important source of external funding for local investments in Łodzkie voivodships, supporting mainly the development of environment protection and transport infrastructure. However, the role of these funds in investment policy realization is limited due to the stiff competition among local governments in applying for funds and specific procedures of obtaining such donations. The research also shows that the availability of EU funds significantly influences decisions of local leaders on investment policy implementation.

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