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Development Policy, Public Spending and Regional Convergence in Italy (1996-2007)

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Author Info
DANIELE, Vittorio

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Abstract

The objective of this paper is twofold. Firstly, it offers some empirical evidence on the evolution of regional disparities in Italy in the light of recent development policies. Secondly, the paper focuses on the role of public spending in the convergence process. This analysis is based on a detailed dataset that offers data for different categories of public expenditure flows at the regional level for the years 1996-2007. Regression analysis shows how the impact of public spending on growth differs, dependent upon the regions and the categories of expenditure. When the entire sample is considered, a positive relationship between current expenditure and productivity growth is found. If the sample is split into Northern and Southern regions, the estimates lead to different results. In the first group, composed of the most developed Italian regions, results show a positive and significant correlation between capital public expenditure and growth, while in the less developed Southern regions productivity growth results as only weakly linked to current expenditure.

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Publisher Info
Article provided by Euro-American Association of Economic Development in its journal Regional and Sectoral Economic Studies.

Volume (Year): 9 (2009)
Issue (Month): 2 ()
Pages:
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Handle: RePEc:eaa:eerese:v:9:y2009:i:9_8

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Related research
Keywords: Italy; regional convergence; development policy; public spending;

Find related papers by JEL classification:
R - Urban, Rural, and Regional Economics
R - Urban, Rural, and Regional Economics
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Durlauf, Steven N. & Johnson, Paul A. & Temple, Jonathan R.W., 2005. "Growth Econometrics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 8, pages 555-677 Elsevier. [Downloadable!] (restricted)
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  2. Emanuela Marrocu & Raffaele Paci, 2006. "The effects of public capital on the productivity of the Italian regions," Working Paper CRENoS 200613, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  3. Marinella Terrasi, 1999. "Convergence and divergence across Italian regions," The Annals of Regional Science, Springer, vol. 33(4), pages 491-510. [Downloadable!] (restricted)
  4. Maaike Beugelsdijk & Sylvester C.W. Eijffinger, 2005. "The Effectiveness of Structural Policy in the European Union: An Empirical Analysis for the EU-15 in 1995-2001," Journal of Common Market Studies, Blackwell Publishing, vol. 43(1), pages 37-51, 03. [Downloadable!] (restricted)
  5. Daniele VITTORIO, 2009. "Public Spending And Regional Convergence In Italy," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(2(8)_ Sum). [Downloadable!]
  6. Roberto León-González & Daniel Montolio, 2004. "Growth, convergence and public investment. A Bayesian model averaging approach," Applied Economics, Taylor and Francis Journals, vol. 36(17), pages 1925-1936, September. [Downloadable!] (restricted)
    Other versions:
  7. GUISAN, Maria-Carmen, 2008. "Rates, Ratios And Per Capita Variables In International Models: Analysis Of Investment And Foreign Trade In Oecd Countries," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 5(2). [Downloadable!]
  8. Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR, CES, MSH, vol. 16(32), pages 205-253, 04. [Downloadable!] (restricted)
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