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Regional policies and sectoral outputs in the Italian regions. A multi-input multi-output counterfactual approach

Author

Listed:
  • Gianluigi Coppola

    (University of Salerno)

  • Sergio Destefanis

    (University of Salerno)

  • Giorgia Marinuzzi

    (IFEL)

  • Walter Tortorella

    (IFEL)

Abstract

We assess the impact of various types of regional policies on the economies of the 20 Italian administrative regions for the 1994-2016 period. Differently from previous works, we assess the impact of various policy funds in four sectors (agriculture, industry, construction, services) through a multi-input multioutput transformation function, and we estimate the policies’ average partial effects through a control function approach incorporating the funds’ allocation rules. Our evidence implies that European Structural Funds had a significant impact on various sectoral components of regional GDP per capita, with the ERDF taking the strongest role. Furthermore, the effectiveness of European Structural Funds is weaker for services, and stronger for industry and (to a lesser extent) agriculture. Nationally funded regional policies do not have any aggregate impact but affect the sectoral composition of GDP.

Suggested Citation

  • Gianluigi Coppola & Sergio Destefanis & Giorgia Marinuzzi & Walter Tortorella, 2021. "Regional policies and sectoral outputs in the Italian regions. A multi-input multi-output counterfactual approach," Discussion Paper series in Regional Science & Economic Geography 2021-08, Gran Sasso Science Institute, Social Sciences, revised May 2021.
    • Handle: RePEc:ahy:wpaper:wp19
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    References listed on IDEAS

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    More about this item

    Keywords

    European Structural Funds; control function approach; sectoral development; multi-output multiinput transformation functions;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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