NextGenerationEU lands: Assessing the territorial allocation of Italy’s Recovery and Resilience funds

Francesco Scotti, Carlo Caporali () and Davide Luca
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Francesco Scotti: Politecnico di Milano
Carlo Caporali: Gran Sasso Science Institute
Davide Luca: University of Cambridge

No 2025-14, Discussion Paper series in Regional Science & Economic Geography from Gran Sasso Science Institute, Social Sciences

Abstract: In response to COVID-19, theEUlaunchedNextGenerationEU,itsmostextensivestim ulus package to date. We focus on Italy, Europe’s largest beneficiary, and analyse the terri torial allocation of its funds from central to local governments. Using a two-stage Heckman selection model, we find that funds primarily target Southern urban areas with stronger ad ministrative capacity and prior EU Cohesion Policy experience. Allocation strategies vary by policy mission: Inclusion and Cohesion funds follow a convergence rationale, while Digital, Education, and Healthcare investments follow a specialisation logic, targeting ar eas with pre-existing sectoral strengths. Lastly, administrative efficiency and strong local governance reduce project delays.

Keywords: NextGenerationEU; Recovery and Resilience Plan; Heckman model; local institutions; administrative capacity; Italy (search for similar items in EconPapers)
Pages: 59 pages
Date: 2025-02, Revised 2025-02
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Persistent link: https://EconPapers.repec.org/RePEc:ahy:wpaper:wp76

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