The impact of structural funds on the Italian Mezzogiorno, 1994-1999

Abstract

This paper aims at providing empirical evidence of the impact of Structural Funds on the economies of Italian Objective 1 Regions (the "Mezzogiorno"). In particular, we consider the effect in terms of economic growth of the 1994-1999 Community Support Framework by using a simple supply-side model estimated with a panel of regional data over the period 1970- 1994. We find a high volatility in the level of growth rates induced by Structural Funds expenditure in six Southern regions (namely, Molise, Campania, Puglia, Basilicata, Calabria and Sardinia).

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