This paper looks at the European Union as a laboratory to study how 'spatially-targeted' policies (i.e. the EU Cohesion and Rural Development Policies) interact with sectoral 'spatially-blind' policies (i.e. the Common Agricultural Policy -CAP), jointly shaping regional growth dynamics. The analysis of the drivers of regional growth shows that the EU Regional Policy has a positive influence on economic growth in all regions. However, its impact is stronger in the most socio-economically advanced areas and is maximised when its expenditure is complemented by Rural
The economic impact of the Regional Policy of the European Union is still controversial. This paper exploits administrative boundaries as spatial discontinuity to estimate the causal effect of this policy on the Italian Objective 1 regions’ employment. The analysis, developed both in a border strategy framework (municipalities contiguous to the policy‐change boundary) and with more traditional RDD models balanced by spatial forcing variables (centroids’ distance and coordinates), shows that the EU Regional Policy produced a positive impact on employment levels, without any displacement of economic activities away from nontreated regions and a concentration of the impact in key economic sectors.
To what extent do regions in different member states of the European Union benefit from Cohesion Policy? A spatial regression discontinuity design approach offers distinct but fully comparable estimates of regional impacts for each individual member state. Cohesion Policy has a positive European Union-wide impact on regional growth and employment. However, a large part of the growth bonus is concentrated in Germany, while impacts on employment are confined to the UK. The picture in Southern Europe is less rosy. In Italy, positive impacts on employment do not survive the Great Recession, while in Spain economic growth benefits are limited to the recovery period.
Can Geographical Indications (GIs) promote local economic development in rural areas? This paper explores the impact of GIs that identify and endorse agri-food products which are strictly embedded within the territory from which they originate. Examining Italian wine protected by GIs through an innovative dataset and by means of propensity score matching and difference-in-differences models make it possible to compare the local economic development trajectories of rural municipalities afforded GIs with the correspondent dynamics of a counterfactual group of similar municipalities without GI status since 1951. Rural municipalities with GIs experience population growth and economic reorganization towards non-farming sectors, which frequently involve higher value-added activities.
The Common Agricultural Policy (CAP) is a core policy of the European Union (EU), representing 40 per cent of the EU budget and a cornerstone of the integration process. Due to the path dependency that defined its evolution, it had always been a rather homogeneous and centralized policy. For the first time, the 2014-20 reform endowed Member States with the possibility to tailor the direct payments of the CAP along different fields of flexibility and thereby better address their national needs. This article examines these national choices in terms of the discontinuity they impose on the centralized policy model, showing that they reduced the policy inertia associated to the historical processes in place at the EU level, along a new national path dependency re-shaping the CAP implementation. The flexibility introduced by the 2014-20 reform was particularly embraced by Member States that had been penalized by the 'one-size-fits-all' historical archetype.
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