We present a novel approach for analyzing the effects of EU cohesion policy on local economic activity. For all municipalities
in the border area of the Czech Republic, Germany and Poland, we collect project-level data on EU funding in the period between
2007 and 2013. Using night light emission data as a proxy for economic development, we show that the receipt of a higher amount
of EU funding is associated with increased economic activity at the municipal level. Our paper demonstrates that remote sensing
data can provide an effective way to model local economic development also in Europe, where no comprehensive cross-border
data is available at such a spatially granular level.
JEL-Codes:R11, O18, H54
Keywords:Regional Development, EU Cohesion Policy, Remote Sensing
Forschungsbereich:Regionalökonomie und räumliche Analyse