Condemned to Success (Failure)? The Allocation of EU Funds among Polish Municipalities

Objective: The aim of the paper is twofold. First, we investigate the mobility of Polish municipalities within the distribution of per capita EU fund expenditures over two terms of office: 2007–2010 and 2011–2014. The resulting joint distribution serves as the basis for some empirical analyses. Second, we consider the relationship between mobility and social capital in 16 Polish regions. Research Design & Methods: We make use of a transition probability matrix and rank-rank regression. Additionally, we employ Spearman’s rank correlation and Kendall’s rank correlation. Both nation-wide and region-specific analyses are conducted. Findings: The municipalities most (least) successful in attracting EU funds in the 2007–2010 period tended to maintain their positions in the 2011–2014 period. The relative and absolute mobility of municipalities – EU funds beneficiaries – differ considerably across regions. There is a significant negative correlation between within-region absolute mobility and the level of bridging social capital within regions. Implications/Recommendations: The persistence of municipalities at the ends of the EU fund absorption ranking can facilitate forecasts of the spatial allocation of EU funds and, consequently, its effects. Contribution: To the author’s best knowledge, the study constitutes the first empirical analysis of within-distribution mobility of municipalities – EU funds beneficiaries. We also provide an initial study on the nexus between social capital and mobility within the ranking of EU funds beneficiaries. Adding to an earlier study by Swianiewicz et al. (2008), we show that the allocation of EU funds in Poland is affected by the level and structure of social capital.