The distributional effects of EU structural funds in Italy: A location-scale approach

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Abstract

Abstract This study investigates the dynamic impact of the European Agricultural Fund for Rural Development (EAFRD) and the European Regional Development Fund (ERDF) on regional GDP per capita in Italy—a country characterized by persistent North–South economic disparities. Employing a location-scale model, we find that both funds generate positive average effects and, crucially, negative scale effects, indicating a reduction in the dispersion of regional GDP per capita. This novel approach reveals that EU Structural Funds contribute to narrowing regional inequalities. While standard methods may obscure such distributional dynamics, our framework highlights the role of cohesion policy in promoting equitable regional convergence. JEL Classification — E62; O18; R11
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The distributional effects of EU structural funds in Italy: A location-scale approach | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article The distributional effects of EU structural funds in Italy: A location-scale approach Francesco Frangiamore, Debora Insolda, Marco Maria Matarrese, and 1 more This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7959263/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 10 You are reading this latest preprint version Abstract This study investigates the dynamic impact of the European Agricultural Fund for Rural Development (EAFRD) and the European Regional Development Fund (ERDF) on regional GDP per capita in Italy—a country characterized by persistent North–South economic disparities. Employing a location-scale model, we find that both funds generate positive average effects and, crucially, negative scale effects, indicating a reduction in the dispersion of regional GDP per capita. This novel approach reveals that EU Structural Funds contribute to narrowing regional inequalities. While standard methods may obscure such distributional dynamics, our framework highlights the role of cohesion policy in promoting equitable regional convergence. JEL Classification — E62; O18; R11 EAFRD ERDF Regional development North-South Italy gap Location-Scale model Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Review Version 1 posted Editorial decision: Revision requested 22 Jan, 2026 Reviews received at journal 20 Jan, 2026 Reviewers agreed at journal 18 Dec, 2025 Reviews received at journal 04 Dec, 2025 Reviewers agreed at journal 12 Nov, 2025 Reviewers agreed at journal 04 Nov, 2025 Reviewers invited by journal 04 Nov, 2025 Editor assigned by journal 28 Oct, 2025 Submission checks completed at journal 28 Oct, 2025 First submitted to journal 27 Oct, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. 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approach","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":false,"highlight":"","institution":"","isAcceptedByJournal":true,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"the-annals-of-regional-science","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"arsc","sideBox":"Learn more about [The Annals of Regional Science](https://link.springer.com/journal/168)","snPcode":"168","submissionUrl":"https://submission.springernature.com/new-submission/168/3","title":"The Annals of Regional Science","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Springer 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Employing a location-scale model, we find that both funds generate positive average effects and, crucially, negative scale effects, indicating a reduction in the dispersion of regional GDP per capita. This novel approach reveals that EU Structural Funds contribute to narrowing regional inequalities. While standard methods may obscure such distributional dynamics, our framework highlights the role of cohesion policy in promoting equitable regional convergence.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eJEL Classification — \u003c/strong\u003eE62; O18; R11\u003c/p\u003e","manuscriptTitle":"The distributional effects of EU structural funds in Italy: A location-scale approach","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-11-14 06:36:29","doi":"10.21203/rs.3.rs-7959263/v1","editorialEvents":[{"type":"communityComments","content":0},{"type":"decision","content":"Revision requested","date":"2026-01-22T20:20:35+00:00","index":"","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2026-01-20T10:59:33+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"20721275454971953569036268025038631236","date":"2025-12-18T07:12:04+00:00","index":"hide","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2025-12-04T17:24:07+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"159037229464603447019613522849651816723","date":"2025-11-12T17:05:26+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"9212114052701435585889904214819516963","date":"2025-11-04T19:50:42+00:00","index":"hide","fulltext":""},{"type":"reviewersInvited","content":"","date":"2025-11-04T19:27:22+00:00","index":"","fulltext":""},{"type":"editorAssigned","content":"","date":"2025-10-28T08:13:35+00:00","index":"","fulltext":""},{"type":"checksComplete","content":"","date":"2025-10-28T08:12:01+00:00","index":"","fulltext":""},{"type":"submitted","content":"The Annals of Regional Science","date":"2025-10-27T09:17:08+00:00","index":"","fulltext":""}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"the-annals-of-regional-science","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"arsc","sideBox":"Learn more about [The Annals of Regional Science](https://link.springer.com/journal/168)","snPcode":"168","submissionUrl":"https://submission.springernature.com/new-submission/168/3","title":"The Annals of Regional Science","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Springer Hybrid","inReviewEnabled":true,"inReviewRevisionsEnabled":false}}],"origin":"","ownerIdentity":"1185f5ae-c58c-49f6-b724-b0ed620a7227","owner":[],"postedDate":"November 14th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"under-review","subjectAreas":[],"tags":[],"updatedAt":"2026-04-23T04:54:03+00:00","versionOfRecord":[],"versionCreatedAt":"2025-11-14 06:36:29","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-7959263","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-7959263","identity":"rs-7959263","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}

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