Cohesion Policy Impact on Regional Development. Cross-sectional and Panel Data-based Spatial Analysis

Cohesion Policy has been the major tool for the EU to struggle against regionaldisparities. Its impact on regional development has always been an important researchtheme. The main aim of our paper is to analyse the impact of Cohesion Policy on thedevelopment of EU NUTS-2 regions in the period 2007-2018, by adopting a Beta-con-vergence model approach, and trying to overcome its main limitations, i.e. endogene-ity, spatial relationship and heterogeneity. In addition, we conduct analysis using bothcross-sectional and panel data. The results show strong evidence of growth convergencebetween regions and a slightly positive Cohesion Policy impact on regional development.While richer regions benefit more from EU support in the short-run, lagging regions tendto experience greater economic effects over time.