Assessing Allocation of EU Cohesion Funds Across Territories: An Empirical Analysis of Italian Municipalities

Cohesion Policy is the European Union's initiative to diminish development disparities among Member States' regions and reinforce economic, social, and territorial cohesion. While funds are typically distributed through Member States and regions, the existing allocation mechanisms are not designed to take into account intra-regional disparities. To delve into intra-regional heterogeneity, this article assesses the determinants influencing the allocation of EU cohesion funds at the municipality level. Leveraging open data from Italian municipalities and information on the allocation of Cohesion Policy funds to territories from the OpenCoesione dataset, we construct a dynamic panel model spanning the 2014-2020 programming period. Employing a panel approach with a random effect component, our findings shed light on the characteristics of territories that influence the distributive process of funds.