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

  • Daniele, Vittorio

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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14334.

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Date of creation: 29 Mar 2009
Date of revision:
Handle: RePEc:pra:mprapa:14334
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  1. Carmen Fernandez & Eduardo Ley & Mark F. J. Steel, 2001. "Model uncertainty in cross-country growth regressions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(5), pages 563-576.
  2. E. Marrocu & R. Paci, 2006. "The effects of public capital on the productivity of the Italian regions," Working Paper CRENoS 200613, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  3. Durlauf, Steven N. & Johnson, Paul A. & Temple, Jonathan R.W., 2005. "Growth Econometrics," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 8, pages 555-677 Elsevier.
  4. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1127-1170.
  5. Maffezzoli Marco, 2006. "Convergence Across Italian Regions and the Role of Technological Catch-Up," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(1), pages 1-43, August.
  6. S. Loddo, 2006. "Structural Funds and Regional Convergence in Italy," Working Paper CRENoS 200603, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  7. Sandy Dall'Erba & Rachel Guillain & Julie Le Gallo, 2009. "Impact of structural funds on regional growth : How to reconsider a 9-year-old black box," Post-Print hal-00485043, HAL.
  8. Stefano Magrini, 2007. "Analysing Convergence through the Distribution Dynamics Approach: Why and how?," Working Papers 2007_13, Department of Economics, University of Venice "Ca' Foscari".
  9. Massimo Florio & Anna Giunta, 2001. "L'esperienza dei contratti di programma: una valutazione a metà percorso," Departmental Working Papers 2001-12, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  10. Marinella Terrasi, 1999. "Convergence and divergence across Italian regions," The Annals of Regional Science, Springer, vol. 33(4), pages 491-510.
  11. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 503-530.
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