Advanced Search
MyIDEAS: Login to save this paper or follow this series

Effects of Local Specialization of Investment Subsides in Italy

Contents:

Author Info

  • Francesco Losurdo

    ()

  • Annamaria Stramaglia
Registered author(s):

    Abstract

    In Italy we currently have a lot of national and regional instruments for financial aids to enterprises. Most of them are not specialized, as syntethetized in the following points: 1. they are refferred to the whole Italian territory; 2. they have generic objects (increase of GNP, reduction of growth differences among regions, employment); 3. they are applied to all the sectors of production; 4. they have common methods of application (automatic, discretional,negotiated). This means that we establish general purposes without further specialization even if we fall into particular purposes.In addition to this types of subsides, there are anymore that are specialized both at territorial and at sectorial level. Among these, the most important are distributed by the Territorial Pacts that are one of the instruments of concerted planning. In this paper we firstly define the specialization of some forms of subsidies; then we analize the performance of two samples of enterprises, that are located in the Apulia Region (NUTS III), the first of which has been benefiting from the state support provided by law n.488/92 (Financial support of the productive activities in depressed zones), and the second one that has been benefiting from the support provided by Territorial Pacts. The enterprises performance have been assessed through quantitative index measured by three main relations: 1. Sales / Assets, that is an indicator measuring the firms efficiency. So it indicates if the total value of sales they?ve carried out, can account for the effectuated investments. 2. Profit / Sales, that estimate the enterprise ability to obtain profits, aging in the market, and let us having indications about prospects of success. 3. Profit / Assets, that assess, in a better way, the capacity in terms of global income of the enterprise. Comparing the average of the three indicators considered, related to supported enterprises, with the same indexes of Mediobanca sample about not-supported enterprises, we obtain interesting results. They have proved that: A. the enterprises having supports are, generally, less efficient than those having no support; B. the firms subsided by Territorial Pacts are more efficient than the other ones subsided by law n.488/92. From the investigation it emerges that the subsides territorially oriented are more efficient than the general support, referred to the same area. So, if we privilege efficiency results, putting the effectiveness ones in a secondary position, we probably should prefer an automatic but specialized aid system, at least from the territorial, dimensional and productive point of view according to preference scales. But, if we want to obtain effectiveness standards too, it is necessary to specialize the interventions and determine specific goals and result indicators.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa03/cdrom/papers/535.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa03p535.

    as in new window
    Length:
    Date of creation: Aug 2003
    Date of revision:
    Handle: RePEc:wiw:wiwrsa:ersa03p535

    Contact details of provider:
    Postal: Welthandelsplatz 1, 1020 Vienna, Austria
    Web page: http://www.ersa.org

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa03p535. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.