IDEAS home Printed from https://ideas.repec.org/p/bdi/wptemi/td_1503_25.html
   My bibliography  Save this paper

Place-based industrial policies and local agglomeration in the long run

Author

Listed:
  • Lorenzo Incoronato

    (University of Naples Federico II)

  • Salvatore Lattanzio

    (Bank of Italy)

Abstract

This paper estimates the long-run effects of place-based industrial policy, studying a program implemented in Italy in the 1960s and 1970s. Leveraging administrative data over a century and exogenous variation in the assignment rules, we document agglomeration of workers and firms in the targeted clusters lasting well beyond the policy's termination. By promoting high-technology industries, the intervention spurred demand for business services and fostered a skilled local workforce. Over time, this produced spillovers from manufacturing to knowledge-intensive services, with sustained gains in local wages and human capital. We illustrate how these persistent effects depended on the initial conditions of host locations.

Suggested Citation

  • Lorenzo Incoronato & Salvatore Lattanzio, 2025. "Place-based industrial policies and local agglomeration in the long run," Temi di discussione (Economic working papers) 1503, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_1503_25
    as

    Download full text from publisher

    File URL: https://www.bancaditalia.it/pubblicazioni/temi-discussione/2025/2025-1503/en_tema_1503.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    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:bdi:wptemi:td_1503_25. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bdigvit.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.