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Governance and the implementation of the EU Cohesion Policy

Author

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  • Celli, Viviana
  • Crescenzi, Riccardo
  • de Blasio, Guido
  • Giua, Mara

Abstract

This paper explores the role of governance in policy implementation, using the European Union (EU) Cohesion Policy as a case study. Leveraging a quasi-natural experiment in Italy, where certain projects were shifted from EU to national management, we evaluate the impact of governance structures on financial execution. Using a non-parametric generalization of the difference-in-differences estimator, we find that otherwise identical projects achieve better financial execution under EU governance. Projects reassigned to national management experience a significant slowdown in financial execution within ten months, with delays reaching nearly 20% after 24 months. These delays are particularly pronounced when projects are managed at the sub-national level rather than by the national government. Our findings contribute to the broader policy debate on the effectiveness of multi-level governance structures in public investment programs.

Suggested Citation

  • Celli, Viviana & Crescenzi, Riccardo & de Blasio, Guido & Giua, Mara, 2025. "Governance and the implementation of the EU Cohesion Policy," LSE Research Online Documents on Economics 127393, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:127393
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    File URL: http://eprints.lse.ac.uk/127393/
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    More about this item

    Keywords

    institutional quality; European Union; place-based policies; regional transfers; governance;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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