Evaluating the Effectiveness of Axis 3-LEADER Grants on Job Creation

This study investigates the relationship between the number of jobs created and funding granted as part of the Community Led Local Development element within the Northern Ireland Rural Development Programme. Analysis is carried out using ex-post application-level data associated with Axis 3-‘improving the quality of life and the management of economic activity’ during the 2007-2013 period. A two-step procedure is used to estimate a negative binomial model and correct for sample selection. A joint estimation was performed to allow for correlation between the structural and selection equations. Results indicate that there is a positive and statistically significant relationship between the number of created jobs and the amount of awarded grant per application and, moreover, that this relationship depends on the categories, or Measures, within Axis 3. The more economic-focused Measures (Diversification into non-Agricultural Activities, Business Creation and Development, and Encouragement of Tourism Activities) showed a statistically significant link between the amount of public funds and job creation. No such relationship was found for the other Measures. Finally, in cases where public funds are linked to job creation, we found that this happens only above a given threshold, namely two or three jobs.

Issue Date:
Apr 25 2017
Publication Type:
Conference Paper/ Presentation
Record Identifier:
Total Pages:
JEL Codes:
C35; Q18

 Record created 2017-07-06, last modified 2018-01-23

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