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The short-run displacement of EU cohesion funds in Italy: Has reprogramming a positive impact on regional growth?

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  • Mazzola, Fabio
  • Gambina, Debora

Abstract

The European cohesion policy aims at fostering long-run growth. This paper, for the first time, empirically evaluates the impacts of Structural Funds re-programming on regional growth, for the Italian case during 2007–20 period. The re-programming was due to the redirection of allocated amounts facing urgent needs related to the Great Recession, Covid-19 and natural disasters. We estimate impulse response functions through Jordà local projections. We find a robust negative effect of re-programming on regional growth starting three years after the planned shock and sectoral heterogeneity. Our empirical results discourage the Funds’ redirection towards a different use from original goals.

Suggested Citation

  • Mazzola, Fabio & Gambina, Debora, 2025. "The short-run displacement of EU cohesion funds in Italy: Has reprogramming a positive impact on regional growth?," Journal of Policy Modeling, Elsevier, vol. 47(1), pages 1-29.
    • Handle: RePEc:eee:jpolmo:v:47:y:2025:i:1:p:1-29
    DOI: 10.1016/j.jpolmod.2024.09.003
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