Understanding the Impact of Regional Policy: A Spatial Econometrics Analysis of Multilevel Cohesion Funding in Italy

This thesis examines the impact of multilevel cohesion funding on regional economic performance in Italy using spatial econometric models. It leverages project-level data from OpenCoesione at the NUTS-3 level to assess direct and spillover effects of EU and Italian Cohesion funds. The Spatial Durbin Model (SDM) and alternative models reveal that while individual funds show limited or negative effects on GDP, their interaction has a positive and significant impact. Results highlight regional disparities, with the North benefiting from spillovers, while the South depends on institutional quality for effective fund absorption. The study underscores the need for coordinated investment strategies to enhance policy effectiveness.