<p>This study investigates the synergistic relationship between EU structural funds and banking development in driving local economic growth in Italy. We employ a growth regression approach on provincial (NUTS 3) and regional (NUTS 2) data from 2010 to 2019, where we interact a measure of EU funds with a banking development index. We find that areas with more developed banking sectors benefit more from cohesion policy funds, experiencing higher industrial value added growth rates. The magnitude of this effect is contingent upon the level of geographical detail.</p>

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EU Structural Interventions, Banking Markets, and Local Growth

  • Paolo Coccorese,
  • Antonio Forte

摘要

This study investigates the synergistic relationship between EU structural funds and banking development in driving local economic growth in Italy. We employ a growth regression approach on provincial (NUTS 3) and regional (NUTS 2) data from 2010 to 2019, where we interact a measure of EU funds with a banking development index. We find that areas with more developed banking sectors benefit more from cohesion policy funds, experiencing higher industrial value added growth rates. The magnitude of this effect is contingent upon the level of geographical detail.