IDEAS home Printed from https://ideas.repec.org/a/mul/jqyfkm/doi10.1432-77791y2014i1-2p155-186.html
   My bibliography  Save this article

The effects of banking system transformations on Italian regions' economic growth

Author

Listed:
  • Perri S.

Abstract

The years before financial crisis (1989-2007) were characterized by transformations of rules and a restructuring process of the Italian banking system. The aim of this paper is to verify if these changes favoured the process of convergence among Italian regions in terms of income, savings and investments, according to the methodology used by Valverde et al. (2007) and the dynamic GMM estimator introduced by Arellano and Bond (1991). The results show that processes of convergence are not significantly determined by financial variables. Regional gaps are linked exclusively to real variables, whereas financial variables have contributed over time to amplify such gaps. In particular, these results highlight that unifications and takeovers of lending institution in Central and Southern area by Northern banks have favoured further credit rationing for the agents living in Southern regions, thus worsening their relative position.

Suggested Citation

  • Perri S., 2014. "The effects of banking system transformations on Italian regions' economic growth," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1-2, pages 155-186.
  • Handle: RePEc:mul:jqyfkm:doi:10.1432/77791:y:2014:i:1-2:p:155-186
    as

    Download full text from publisher

    File URL: https://www.rivisteweb.it/download/article/10.1432/77791
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.rivisteweb.it/doi/10.1432/77791
    Download Restriction: no

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Thomas Herndon & Michael Ash & Robert Pollin, 2014. "Does high public debt consistently stifle economic growth? A critique of Reinhart and Rogoff," Cambridge Journal of Economics, Oxford University Press, vol. 38(2), pages 257-279.
    2. Hans-Werner Sinn & Timo Wollmershäuser, 2011. "Target Loans, Current Account Balances and Capital Flows: The ECB’s Rescue Facility," CESifo Working Paper Series 3500, CESifo Group Munich.
    3. Olivier J. Blanchard & Daniel Leigh, 2013. "Growth Forecast Errors and Fiscal Multipliers," American Economic Review, American Economic Association, vol. 103(3), pages 117-120, May.
    4. Gros, Daniel, 2012. "Macroeconomic Imbalances in the Euro Area: Symptom or cause of the crisis?," CEPS Papers 6865, Centre for European Policy Studies.
    5. Hans-Werner Sinn & Timo Wollmershäuser, 2012. "Target loans, current account balances and capital flows: the ECB’s rescue facility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(4), pages 468-508, August.
    6. Carmen M. Reinhart & Kenneth S. Rogoff, 2010. "Growth in a Time of Debt," American Economic Review, American Economic Association, pages 573-578.
    7. Francesco Giavazzi & Marco Pagano, 1991. "The Advantage of Tying One's Hands: EMS Discipline and Central Bank Credibility," NBER Chapters,in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 303-330 National Bureau of Economic Research, Inc.
    8. Mario Sarcinelli, 2013. "L'unione bancaria europea e la stabilizzazione dell'Eurozona," Moneta e Credito, Economia civile, vol. 66(261), pages 7-42.
    9. Lawrence Christiano & Martin Eichenbaum & Sergio Rebelo, 2011. "When Is the Government Spending Multiplier Large?," Journal of Political Economy, University of Chicago Press, vol. 119(1), pages 78-121.
    10. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    11. Alan J. Auerbach & Yuriy Gorodnichenko, 2012. "Fiscal Multipliers in Recession and Expansion," NBER Chapters,in: Fiscal Policy after the Financial Crisis, pages 63-98 National Bureau of Economic Research, Inc.
    12. Carlo Panico & Francesco Purificato, 2013. "Policy coordination, conflicting national interests and the European debt crisis," Cambridge Journal of Economics, Oxford University Press, vol. 37(3), pages 585-608.
    13. Gauti B. Eggertsson & Paul Krugman, 2012. "Debt, Deleveraging, and the Liquidity Trap: A Fisher-Minsky-Koo Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 127(3), pages 1469-1513.
    14. Mongelli, Francesco Paolo & De Grauwe, Paul, 2005. "Endogeneities of optimum currency areas: what brings countries sharing a single currency closer together?," Working Paper Series 468, European Central Bank.
    15. Astarita, Caterina & Purificato, Francesco, 2013. "TARGET2 imbalances and the need for a lender of last resort," MPRA Paper 51124, University Library of Munich, Germany.
    16. Mongelli, Francesco Paolo, 2002. "ìNew" Views on the Optimum Currency Area Theory: What is EMU Telling US?," Royal Economic Society Annual Conference 2002 140, Royal Economic Society.
    17. Giannola A. & Petraglia C., 2007. "Demand and supply oriented policies and development. The "forgotten" dualism," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1, pages 13-42.
    18. Carlo Panico & Vàzquez Suàrez Marta, 2008. "Policy Coordination in the Euro Area," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2008(96), pages 5-31.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Perché il Sud è meno efficiente
      by Salvatore Perri in La Voce on 2015-10-20 05:38:44
    2. Divario Nord-Sud, perché il Mezzogiorno è meno efficiente
      by Lavoce.info in Il Fatto Quotidiano on 2015-10-23 11:55:47

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:jqyfkm:doi:10.1432/77791:y:2014:i:1-2:p:155-186. 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: (). General contact details of provider: https://www.rivisteweb.it/ .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.