European Cohesion Policy impact on development and convergence: a local empirical analysis in Portugal between 2000 and 2014

Substantial European Structural and Investment Funds (ESIF) monies have been directed at regional economic and social development in Portugal in which Portuguese local government plays a vital role. Given the magnitude of funding, an important question turns on the effect of the ESIF on overall local authority performance. This paper focuses on the impact of the ESIF on Portuguese municipality performance and development. In particular, it investigates whether the ESIF improved the performance of Portuguese local government and which factors best explain its effect on municipality development. The analysis considers all 308 Portuguese local authorities for the period 2000–2014. Various policy implications flowing from the empirical results of this analysis are explored.