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Regional convergence and public spending in Italy. Is there a correlation?

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  • Daniele, Vittorio

Abstract

The aim of this paper is twofold. Firstly, it examines the evolution of regional disparities among the Italian regions during the period 1980-2007. Secondly, the paper analyses the relationship between public spending and regional productivity growth. This analysis is based on the Regional Public Accounts (RPA), a detailed database which measures public financial flows at the territorial level for the period 1996-2006. Results show how the process of both σ and β convergence has mainly concerned labour productivity, while the convergence in per capita GDP has been very weak. The impact of public spending has been different, depending on the expenditure categories and the regions considered. While in the more developed regions of the Northern area of Italy we found a positive correlation between capital expenditure and growth, in the less developed Mezzogiorno the correlation was found only for current expenditure.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14334.

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Date of creation: 29 Mar 2009
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Handle: RePEc:pra:mprapa:14334

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Keywords: Italy; regional convergence; development policy;

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  1. Johnson, Paul & Durlauf, Steven N & Temple, Johnathan R. W., 2004. "Growth Econometrics," Vassar College Department of Economics Working Paper Series 61, Vassar College Department of Economics.
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  2. Marco Maffezzoli, 2004. "Convergence Across Italian Regions and the Role of Technological Catch-Up," Working Papers 274, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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  7. Raffaele Paci & Francesco Pigliaru, 1996. "ß-Convergence and/or structural change? Evidence from the Italian regions," Working Paper CRENoS 199607, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  8. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implicationsfor Growth," University of Chicago - George G. Stigler Center for Study of Economy and State 65, Chicago - Center for Study of Economy and State.
  9. Stefano Magrini, 2007. "Analysing Convergence through the Distribution Dynamics Approach: Why and how?," Working Papers 2007_13, Department of Economics, University of Venice "Ca' Foscari".
  10. Massimo Florio & Anna Giunta, 2001. "L'esperienza dei contratti di programma: una valutazione a metà percorso," Departmental Working Papers 2001-12, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  11. Emanuela Marrocu & Raffaele Paci, 2010. "The effects of public capital on the productivity of the Italian regions," Applied Economics, Taylor and Francis Journals, vol. 42(8), pages 989-1002.
  12. Sandy DALL’ERBA & Rachel GUILLAIN & Julie LE GALLO, 2009. "Impact Of Structural Funds On Regional Growth: How To Reconsider A 9 Year-Old Black Box," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 30, pages 77-100.
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