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Table 2 The effects of European Structural Funds on annual growth, controlling for LLM time invariant characteristics and differential time trends

From: European structural funds during the crisis: evidence from Southern Italy

Annual 2008–13 growth in:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Employment

Population

House price per sqm

ln(annual per capita payments)t

0.0028

0.0010

0.0014

−0.0004**

−0.0000

−0.0003

0.0063**

0.0012

0.0029

(0.0017)

(0.0017)

(0.0014)

(0.0002)

(0.0002)

(0.0002)

(0.0025)

(0.0020)

(0.0021)

Controls selected by the double selection procedure:

ln(allocated per capita funds)

 

−0.0756

−0.0034**

 

−0.0052

0.0002

 

0.2453***

0.0034

 

(0.0879)

(0.0014)

 

(0.0116)

(0.0003)

 

(0.0929)

(0.0026)

fraction of surface composed of municipalities on the coast

 

−0.0015

  

−0.0004

0.0010*

 

0.0183

 
 

(0.0152)

  

(0.0019)

(0.0006)

 

(0.0172)

 

fraction of surface composed of municipalities in a mountain area

 

−0.0084

  

0.00132

  

0.0300*

0.0055*

 

(0.0131)

  

(0.0017)

  

(0.0157)

(0.0031)

unemployment rate2006

 

−7.5712**

  

−0.0243

  

−5.4767*

−0.1442***

  

(3.5826)

  

(0.3705)

  

(3.2750)

(0.0524)

ln(employment)2006

 

2.0891

  

0.1027

0.0008***

 

1.0234

 
  

(1.2758)

  

(0.2218)

(0.0002)

 

(1.4014)

 

population growth 2004-07

 

−1.7737

0.2652***

 

0.6807

0.2124***

 

1.2108

 
 

(2.7249)

(0.0278)

 

(0.4949)

(0.0109)

 

(4.6594)

 

house price growth 2004-07

 

0.0881

  

−0.0170

0.0022**

 

−0.6140***

 
 

(0.1615)

  

(0.0201)

(0.0010)

 

(0.1818)

 

share trade services workers 2007

 

−0.0980

  

−0.0002

0.0084***

 

0.1629**

 
 

(0.0658)

  

(0.0081)

(0.0026)

 

(0.0636)

 

housing units pc × time 2

 

−0.0124

  

0.0016

  

−0.0009

0.0008***

 

(0.0212)

  

(0.0030)

  

(0.0198)

(0.0002)

unemployment rate2006 × time

 

14.0820***

  

0.1115

  

6.8283

0.0469***

 

(4.9298)

  

(0.5247)

  

(4.4299)

(0.0095)

ln(house price per sqm)2006 × time

 

0.0694

  

−0.0036

  

0.2550***

−0.0061***

 

(0.0620)

  

(0.0079)

  

(0.0774)

(0.0007)

Additional controls

LLM FE

All remaining variables in f i ′; f i ′ × t; f i ′ × t 2

No additional controls

LLM FE

All remaining variables in f i ′; f i ′ × t; f i ′ × t 2

No additional controls

LLM FE

All remaining variables in f i ′; f i ′ × t; f i ′ × t 2

No additional controls

Obs

1950

1950

1950

1950

1950

1950

1950

1950

1950

R2

0.2350

0.3403

0.2354

0.1519

0.6745

0.5934

0.3302

0.5170

0.3074

Strict exog test

0.2892

  

0.6070

   

0.1941

 
  1. Note:
  2. The regressions include a constant and year fixed effects. Standard errors clustered for LLM in parentheses. See Table 1 for data sources. \( {f}_i^{\prime } \) is a vector of pre-determined covariates: the employment rate, unemployment rate, activity rate, and level of the outcomes (in logarithm) for 2004, 2005, 2006 and 2007; the growth of the outcomes over 2004–07; total surface (in kmq), population density in 2007, average altitude, fraction of surface composed of municipalities in a mountain area, fraction composed of municipalities located on the coast, total number of houses per capita (census 2001 on population 2007) and total number of empty houses per capita (census 2001 on population 2007); 2007 share of private workers in construction, trade services, and other services (considering manufacturing as the excluded category); logarithm of originally allocated funds (and its square). Columns (1), (4), (7) include only LLM FE, with no additional controls. Controls in columns (3), (6), (9) have been selected using the “double selection” of Belloni et al. (2014) and the code provided by the authors. Columns (2), (5), (8) include all \( {f}_i^{\prime } \), f i ′ × t and f i ′ × t 2, but only coefficients on those that are also “double selected” are shown (a full regression table is available from the authors). The strict exogeneity test is the p-value for a test for H0: ln(annual pc payments)t+1 = 0
  3. *p < .10 **p < .05 ***p < .01