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Research Articles

Reaching the margins: Addressing demographic transition through EU Cohesion and Rural Development Policies in Italy

Francesco Mantino
CREA

Published 2025-12-10

Keywords

  • demographic change,
  • Rural areas,
  • Cohesion policy,
  • Rural development policy,
  • spatial econometric models,
  • impact territorial assessment
  • ...More
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How to Cite

Mantino, F., De Fano, G., & Asaro, G. (2025). Reaching the margins: Addressing demographic transition through EU Cohesion and Rural Development Policies in Italy. Italian Review of Agricultural Economics. https://doi.org/10.36253/rea-16853

Abstract

The impact of demographic decline on the allocation of policy instruments and public funding across territories has received limited attention. This study therefore identifies the key variables that influence the uptake of EU policies to clarify the conditions that may hinder the participation of declining territories in public programmes. This research is the first to jointly consider EU cohesion policy – through the European Regional Development Fund (ERDF) and the European Social Fund (ESF) – and rural development policy, financed by the European Agricultural Fund for Rural Development (EAFRD). A territorial typology of municipalities was adopted based on the EUROSTAT degree of urbanisation (DEGURBA) classification of urban–rural boundaries, combined with long-term demographic trends. This typology makes it possible to capture the differences between urban and rural areas, as well as the heterogeneity within each group. We examined the influence of territorial typology and other explanatory variables on per capita spending under ERDF, ESF and EAFRD using spatial autoregressive models. The results reveal that demographic decline significantly undermines the capacity of rural areas to attract EU policies, as it progressively erodes the institutional strength of local authorities and the entrepreneurial ability of private actors to undertake investments and safeguard territorial capital over time.

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