Governance and the implementation of the EU Cohesion Policy

Celli, Viviana, Crescenzi, Riccardo ORCID: 0000-0003-0465-9796, de Blasio, Guido and Giua, Mara (2025) Governance and the implementation of the EU Cohesion Policy. Geography and Environment Discussion Paper Series (50). Department of Geography and Environment, The London School of Economics and Political Science, London, UK.

Text (dps 50 crescenzi et al) - Published Version Download (1MB)

• Publisher

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.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://www.lse.ac.uk/geography-and-environment/re...
Additional Information:	© 2025 The Authors
Divisions:	Geography & Environment
Subjects:	J Political Science > JN Political institutions (Europe) J Political Science > JF Political institutions (General)
JEL classification:	C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C21 - Cross-Sectional Models; Spatial Models; Treatment Effect Models O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures; Other Public Investment and Capital Stock R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, and Changes
Date Deposited:	24 Feb 2025 16:03
Last Modified:	01 Mar 2025 04:17
URI:	http://eprints.lse.ac.uk/id/eprint/127393

Actions (login required)

View Item