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Regional Disparity in ICT Adoption: an Empirical Evaluation of The Effects of Subsidies in Italy

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  • G. Atzeni

    ()

  • O. Carboni

    ()

Abstract

This paper investigates on a marked case of regional inequality concerning the information and communication technology adoption process and the role of subsidies in Italy. There is a consolidated and persistent gap between the industrialized North and the sensibly backward South. Econometric results show that adoption of ICT is affected by the geographical location, the industry and firm characteristics. A matching estimator is applied to explore subsidies effectiveness. We find that subsidies have a significant impact but only for small firms. Given the firm system in Italy, we conclude that, to limit the acceleration of Italian North-South dualism, subsidies should only be granted to small firms.

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Bibliographic Info

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200608.

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Date of creation: 2006
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Handle: RePEc:cns:cnscwp:200608

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Related research

Keywords: regional disparities; digital divide; subsidies; treatment effect; nearest neighbour matching estimator; information and communication technologies;

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References

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  3. Simona Iammarino & Cecilia Jona-Lasini & Susanna Mantegazza, 2004. "Labour productivity, ICT and regions: The revival of Italian “dualism”?," SPRU Working Paper Series 127, SPRU - Science and Technology Policy Research, University of Sussex.
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  21. F. Pigliaru, 2001. "Analisi della convergenza regionale: troppa o troppo poca?," Working Paper CRENoS 200107, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  22. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
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Citations

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Cited by:
  1. Aiello, Francesco & Cardamone, Paola, 2012. "Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 205-220.
  2. G. Marletto, 2007. "Crossing The Alps: Three Transport Policy Options," Working Paper CRENoS 200712, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  3. O. Carboni & G. Medda, 2007. "Government Size and the Composition of Public Spending in a Neoclassical Growth Model," Working Paper CRENoS 200701, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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