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Regional convergence and public spending in Italy. Is there a correlation?

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  • Daniele, Vittorio

Abstract

The aim of this paper is twofold. Firstly, it examines the evolution of regional disparities among the Italian regions during the period 1980-2007. Secondly, the paper analyses the relationship between public spending and regional productivity growth. This analysis is based on the Regional Public Accounts (RPA), a detailed database which measures public financial flows at the territorial level for the period 1996-2006. Results show how the process of both σ and β convergence has mainly concerned labour productivity, while the convergence in per capita GDP has been very weak. The impact of public spending has been different, depending on the expenditure categories and the regions considered. While in the more developed regions of the Northern area of Italy we found a positive correlation between capital expenditure and growth, in the less developed Mezzogiorno the correlation was found only for current expenditure.

Suggested Citation

  • Daniele, Vittorio, 2009. "Regional convergence and public spending in Italy. Is there a correlation?," MPRA Paper 14334, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:14334
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    File URL: https://mpra.ub.uni-muenchen.de/14334/1/MPRA_paper_14334.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Italy; regional convergence; development policy;

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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