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Regional Development and Public Spending: The Case of Italy

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  • Alfredo Del Monte
  • Antonio Acconcia

Abstract

Regional Development and Public Spending: the Case of Italy (by Antonio Acconcia, Alfredo Del Monte) - ABSTRACT: In Italy redistribution and regional policies have been implemented since World War II; poorer regions have been receiving large amount of public funds, namely public consumption and infrastructure investment, to stimulate economic activity or, more generally, to increase welfare. Starting with this premise, the paper analyses the effects of public spending on regional growth in Italy. Taking advantage of both the spatial and the time dimension of the available data, we offer results of two distinct panel analyses which stress the cross-section or the time dimension, respectively. The main results are the following: there is a positive relationship between regional growth and infrastructure capital which mainly holds for the Manufacturing sector; within the Manufacturing sector, the impact of public investment on productivity is noticeably stronger for the low-income group of regions than for the high-income group of regions. No positive impact of public consumption on productivity is detected. Keywords: regional disparities; infrastructure investment; public consumption. JEL Classification: O18, H54

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Bibliographic Info

Article provided by FrancoAngeli Editore in its journal STUDI ECONOMICI.

Volume (Year): 2000/72 (2000)
Issue (Month): 72 ()
Pages:

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Handle: RePEc:fan:steste:v:html10.3280/ste2000-072001

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Cited by:
  1. Roberto Basile & Sergio de Nardis & Alessandro Girardi, 2001. "Regional inequalities and cohesion policies in the european union," ISAE Working Papers 23, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
  2. Bertarelli Silvia, 2006. "Capitale pubblico e crescita: una sintesi critica," Politica economica, Società editrice il Mulino, issue 3, pages 361-398.
  3. Federico Bonaglia & Eliana La Ferrara & Massimiliano Marcellino, 2000. "Public Capital and Economic Performance: Evidence from Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 59(2), pages 221-244, September.
  4. Gerson Javier Pérez V. & Peter Rowland, 2004. "Regional Economic Policies:Four Country Cases," BORRADORES DE ECONOMIA 003438, BANCO DE LA REPÚBLICA.
  5. Sergio Destefanis & Vania Sena, 2005. "Public capital and total factor productivity: New evidence from the Italian regions, 1970-98," Regional Studies, Taylor and Francis Journals, vol. 39(5), pages 603-617.
  6. Camilla Mastromarco & Ulrich Woitek, 2006. "Public Infrastructure Investment and Efficiency in Italian Regions," Journal of Productivity Analysis, Springer, vol. 25(1), pages 57-65, 04.
  7. Juan David Barón & Gerson Javier pérez & Peter Rowland, 2004. "A Regional Economic Policy for Colombia," REVISTA DE ECONOMÍA DEL ROSARIO, UNIVERSIDAD DEL ROSARIO.

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