Regional disparities in funding the social economy through POCU 2014-2020: A comparative analysis of the North-West and North-East regions

Abstract

This study provides a comparative analysis of funding allocated to the social economy through the Human Capital Operational Programme (POCU) 2014-2020, Specific Objective 4.16, across the North-West and North-East development regions of Romania. Drawing on literature on regional disparities in structural funds absorption and the social economy institutional framework, the research investigates whether differences in administrative capacity and economic development are reflected in access to funding for social entrepreneurship. The method is comparative-descriptive, based on official public data from the data.gov.ro portal, specifically the 'Contracted Projects' dataset. The results confirm the main hypothesis (H1): the North-West region contracted a higher number of projects (71 vs. 55) and a higher total funding value (747 million lei vs. 526 million lei), a gap driven primarily by project volume rather than size, as the average value per project differs by 10.2%. The secondary hypothesis (H2) is partially confirmed: NGOs are the dominant beneficiary category in the North-West (43.7%), whilst public institutions constitute the majority in the North-East (58.2%), reflecting a less consolidated non-profit ecosystem in less developed regions. The study contributes to literature on the territorial dimension of social economy policies in Romania and formulates implications for ESF+ interventions during 2021-2027.