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    The Impact of Institutional Quality and Efficient Cohesion Investments on Economic Growth Evidence from Italian Regions

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    Literature stresses that efficient institutions are necessary to achieve the highest returns from public policies. It has been recognized by the European Union (EU) that regional institutions have a fundamental role in obtaining the highest results from Cohesion and Structural investments, which represent the main fiscal and anticyclical instruments available for the regions. The paper aims at analyzing the impact of the quality of regional governments, and their management of EU cohesion funds on the economic growth of Italian regions. In order to measure the quality of institutions, we have combined the Institutional Quality Index (IQI) with a set of efficiency indexes, calculated in order to evaluate the ability of regional policymakers to manage European Funds. We conduct a two-way fixed effect panel regression model during the period between 2007 and 2015. The results underline that, in general, Cohesion investments and IQI are positively related to the regional growth; instead, efficiency indexes are important key factors mainly in the Southern area, characterized by structural weaknesses.</jats:p

    Did the governance of EU funds help italian regional labour markets during the great recession?

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    European and national policy-makers have highlighted the role of the cohesion policy in smoothing the effects of the crisis during the programme period 2007–13. To support these claims, however, specific evidence is needed. This article studied the relations between the absorption of the EU funds and regional labour markets in Italian regions during the Great Recession. By applying different panel data models to new data on cohesion policy, three main results were achieved. We found that the cohesion policy made a contribution to the resilience of Italian regional labour markets. Yet the short-term consequences of the cohesion policy on regional economies were conditional on the heterogeneous quality of regional institutions. We also found that the policy changes introduced in Italy during the crisis increased the effectiveness of the cohesion policy. The analysis was controlled for endogeneity issues and alternative specifications

    Making the EU cohesion policy work to support exports at time of Covid-19: Evidence on the Italian regions()

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    This study investigates regional trade resilience and the role of the EU cohesion policy to support exports during the first wave of the Covid-19 crisis. We compare regional export resilience during the pandemic shock and the Great Recession in order to find possible similar patterns. We also use panel estimates obtained for the years of the Great Recession to construct regional trade adjustment scenarios at time of Covid-19. Our results suggest that the main adverse consequences of the first wave of the pandemic crisis on regional exports are localised in the regions that show high integration in international global value chains, and high exposure to tourism activities. We also find that the drop in regional exports observed during the first wave of the Covid-19 shock can be limited if more EU funds are timely transferred to beneficiaries. We develop different trade adjustment scenarios to account for heterogeneity among the Italian regions and specific characteristics of the Covid-19 crisis. The main policy implications of our study are finally discussed
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