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Past dominations, current informal institutions and the Italian regional economic performance_x0003_

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  • Adriana Di Liberto

Abstract

We study the connection between economic performance and the quality of government institutions for the sample of 103 Italian NUTS3 regions, including new measures of institutional quality calculated using data on the provision of four areas of public service: health, educational infrastructures, environment and energy. In order to address likely endogeneity problems, we use the histories of the di_x000B_erent foreign dominations and their bureaucracies that ruled Italian regions between the 16th and 17th century and over seven hundred years before the creation of the uni_x000C_ed Italian State. Our results suggest a signi_x000C_cant role of past historical institutions on the current public administration quality and show that the latter makes a di_x000B_erence to the economic performance of regions. Overall, our analysis con_x000C_rms that informal institutions matter for development, and that history can be used to _x000C_nd suitable instruments.

Suggested Citation

  • Adriana Di Liberto, 2013. "Past dominations, current informal institutions and the Italian regional economic performance_x0003_," ERSA conference papers ersa13p1033, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa13p1033
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    More about this item

    Keywords

    economic development; quality of government; informal institutions; history; weak instruments;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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