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The illegitimate fruit of the Italian economy: a North-South comparison

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  • Guido Rey

Abstract

With the recent revision of the national accounts manuals it was determined that the unobserved economy, expressly the underground economy, should be included in the national official statistics. In Italy, the underground economy is a structural but non-homogeneous characteristics that is widespread due to the ambiguity of politicians. The underground economy of Centre-North, characterized by fiscal evasion is different from the one prevailing in South, deriving from lack of entrepreneurship, technology and infrastructures. Once more the question is whether the underground economy is the problem of the South, impeding its growth, or rather a consequence of the South’s underdevelopment. A mix of old concepts and theories reassessed and new models and appropriate policies could help to limit the underground economy and define a new strategy for a systemic growth with the active contribution of enterprises, banks and public administration.

Suggested Citation

  • Guido Rey, 2007. "The illegitimate fruit of the Italian economy: a North-South comparison," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 1, March.
    • Handle: RePEc:rar:journl:0045
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    References listed on IDEAS

    as
    1. Feige,Edgar L. (ed.), 1989. "The Underground Economies," Cambridge Books, Cambridge University Press, number 9780521262309.
    2. Riccardo Varaldo, 2006. "Il nuovo modello competitivo e aziendale dei didtretti industriali," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2006(1).
    3. Maurizio Bovi & Laura Castellucci, 2001. "Cosa sappiamo dell'economia sommersa in Italia al di l? dei luoghi comuni? Alcune proposizioni empiricamente fondate," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2001(6).
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    More about this item

    Keywords

    Underground economy;

    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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