European structural funds during the crisis: evidence from Southern Italy

Table 7 The effects of European Structural Funds on annual growth, 2008–13. Heterogeneity with respect to the kind of payments

Annual 2008–13 growth in:	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
Annual 2008–13 growth in:	Employment			Population			House price per sqm
ln(annual pc payments for goods and services purchase)_t	0.0062***	0.0047***	0.0031**	−0.0008***	−0.0002	0.0000	0.0044	0.0030	0.0024
ln(annual pc payments for goods and services purchase)_t	(0.0021)	(0.0017)	(0.0015)	(0.0002)	(0.0002)	(0.0002)	(0.0029)	(0.0021)	(0.0021)
ln(annual pc payments for ncentives)_t	0.0032***	0.0020*	0.0027***	−0.0000	−0.0002	−0.0003*	0.0007	0.0013	0.0000
ln(annual pc payments for ncentives)_t	(0.0012)	(0.0011)	(0.0010)	(0.0001)	(0.0001)	(0.0001)	(0.0015)	(0.0011)	(0.0013)
ln(annual pc payments for infrastructural projects)_t	0.0000	0.0009	0.0002	−0.0001	0.0000	−0.0000	0.0013	−0.0012*	−0.0004
ln(annual pc payments for infrastructural projects)_t	(0.0007)	(0.0005)	(0.0005)	(0.0001)	(0.0001)	(0.0001)	(0.0009)	(0.0007)	(0.0007)
Additional controls	LLM FE	All f _i′;	Chosen by double selection	LLM FE	All f _i′;	Chosen by double selection	LLM FE	All f _i′;	Chosen by double selection
		f _i′ × t;			f _i′ × t;			f _i′ × t;
		f _i′ × t ²			f _i′ × t ²			f _i′ × t ²
Obs	1950	1950	1950	1950	1950	1950	1950	1950	1950
R2	0.2420	0.3452	0.2471	0.1566	0.6751	0.6093	0.3284	0.5191	0.3418
Strict exog test for:
- Goods and services	0.0005			0.0934			0.0006
- Incentives	0.2651			0.5723			0.2803
- Infrastructural projects	0.9358			0.9287			0.0364

Note:
Standard errors clustered for LLM in parentheses. See Tables 1–2 for other info. The strict exogeneity test is the p-value for a test for H₀: ln(annual payment for …)_t+1 = 0. 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
*p < .10 **p < .05 ***p < .01