The regional landscape in Europe has changed during the last decades. After a period of conversion, processes of diversion has reentered the scene. In the aftermath of the economic crisis South European countries and regions have suffered due to declining economic activity. The trend toward...

This paper focuses on the impact of EU structural funds (SFs) on the GDP per capita of 183 European NUTS2 regions from 1990 to 2016. To allow for the endogeneity of funds allocation to regions, we estimate a bivariate structural panel VAR model, controlling for unobserved heterogeneity through a...