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<p>This study investigates the dynamic impact of the European Agricultural Fund for Rural Development (EAFRD) and the European Regional Development Fund (ERDF) on regional GDP per capita in Italy—a country characterized by persistent North–South economic disparities. Employing a location-scale model, we find that both funds generate positive average effects and, crucially, negative scale effects, indicating a reduction in the dispersion of regional GDP per capita. This novel approach reveals that EU Structural Funds contribute to narrowing regional inequalities. While standard methods may obscure such distributional dynamics, our framework highlights the role of cohesion policy in promoting equitable regional convergence.</p>

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The distributional effects of EU structural funds in Italy: a location-scale approach

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年5月21日

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  • Francesco Frangiamore,
  • Debora Insolda,
  • Marco Maria Matarrese,
  • Khatereh Yarveisi

摘要

This study investigates the dynamic impact of the European Agricultural Fund for Rural Development (EAFRD) and the European Regional Development Fund (ERDF) on regional GDP per capita in Italy—a country characterized by persistent North–South economic disparities. Employing a location-scale model, we find that both funds generate positive average effects and, crucially, negative scale effects, indicating a reduction in the dispersion of regional GDP per capita. This novel approach reveals that EU Structural Funds contribute to narrowing regional inequalities. While standard methods may obscure such distributional dynamics, our framework highlights the role of cohesion policy in promoting equitable regional convergence.