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No blessing, no curse? On the benefits of being a resource-rich southern region of Italy

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  • Roberto Iacono

    (Department of Economics, Norwegian University of Science and Technology)

Abstract

The aim of this research is to examine the economic effects of natural resources in Basilicata, a southern region of Italy. The paper focuses on the economic effects of large-scale oil extraction that started in 1999. I proceed by systematically constructing a comparison unit for Basilicata using synthetic control techniques. The comparison unit's economic parameters capture how Basilicata's economic activities would have evolved in the absence of the oil extraction industry. The comparison between real GDP per capita in Basilicata and in its comparison unit suggest that a large amount of oil extraction, at times peaking at 50 barrels per capita per year, has no detectable effect on Basilicata's economic performance.

Suggested Citation

  • Roberto Iacono, 2014. "No blessing, no curse? On the benefits of being a resource-rich southern region of Italy," Working Paper Series 15914, Department of Economics, Norwegian University of Science and Technology.
    • Handle: RePEc:nst:samfok:15914
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    Cited by:

    1. Roberto Iacono, 2015. "The Basilicata Wealth Fund: Resource Policy and Long-run Economic Development in Southern Italy," Working Papers 2015.96, Fondazione Eni Enrico Mattei.
    2. Viccaro, Mauro & Rocchi, Benedetto & Cozzi, Mario & Severino, Marino, 2015. "The socioeconomic impact derived from the oil royalty allocation on regional development," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207861, Italian Association of Agricultural and Applied Economics (AIEAA).
    3. Rickman, Dan & Wang, Hongbo, 2020. "What goes up must come down? The recent economic cycles of the four most oil and gas dominated states in the US," Energy Economics, Elsevier, vol. 86(C).

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    More about this item

    Keywords

    Natural resources; Oil Royalties; Regional Development; Synthetic Control Method; Basilicata;
    All these keywords.

    JEL classification:

    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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