A New Approach to Examine Non-Linear and Mediated Growth and Convergence Outcomes of Cohesion Policy

This paper contributes to a wide range of studies on Cohesion policy (CP) outcomes by proposing new approach directly examine its effect convergence. We extended the non-linear specification conditional β-convergence model introducing 2- and 3-way multiplicative terms institutions as moderators not only for growth but also By developing calculating slope coefficients their standard errors, we found empirical evidence that institutional quality can scale down diminishing marginal impact funding even trigger increase. Our regarding changes disaggregation levels, programming period, CP is robust. research findings suggest redistribution funds over 2021–2027 period in favour projects dedicated enhancing quality.