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The demand side of Industrial Policies: Evidence and Methodology for Italian firms

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  • Brancati, Raffaele
  • Ciferri, Davide

Abstract

From the second post-war, a significant amount of resources have been used to support Italian industrial policy. Several studies has been developed in order to evaluate these types of interventions, but less efforts have been devoted to understand what were the real needs of Italian firms. The main aim of this paper is to analyze the demand of public subsides describing the experience of the Italian firms with regard to a complex structure of public interventions actually supplied by both central and local government. This type of demand is related to both the financial benefits led by the public grants and the firms’ needs produced by the potential new investments. A deep understanding of these mechanisms could improve the efficiency of the public sector policy design favouring the development of coherent and adequate program of grants with respect to the complex scenario in which Italian firms operate. Qualitative information and data were gathered trough interviews with managers of about 5400 firms. Logit techniques are developed in order to describe and quantify this demand. The main results are: firstly, it is difficult to outline a general demand framework in which all firms can be collocate independently by their specific characteristics: secondly, a significance and well-clear demand seems to stand out form those firms which represent the more innovative and dynamic sectors of the Italian economic system; finally, a more general and traditional view of the industrial policy related to the development of physic infrastructures is not such appreciated by the firms, mainly because of a lack of trust on the effective efficiency of these types of interventions.

Suggested Citation

  • Brancati, Raffaele & Ciferri, Davide, 2007. "The demand side of Industrial Policies: Evidence and Methodology for Italian firms," MPRA Paper 5282, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:5282
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    File URL: https://mpra.ub.uni-muenchen.de/5282/1/MPRA_paper_5282.pdf
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    References listed on IDEAS

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    1. repec:spr:portec:v:1:y:2002:i:2:d:10.1007_s10258-002-0010-3 is not listed on IDEAS
    2. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    3. Helena Lenihan, 2004. "Evaluating Irish industrial policy in terms of deadweight and displacement: a quantitative methodological approach," Applied Economics, Taylor & Francis Journals, vol. 36(3), pages 229-252.
    4. Brown, Marilyn A. & Curlee, T. Randall & Elliott, Steven R., 1995. "Evaluating technology innovation programs: the use of comparison groups to identify impacts," Research Policy, Elsevier, vol. 24(5), pages 669-684, September.
    5. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2001. "Evaluating the employment impact of a mandatory job search assistance program," IFS Working Papers W01/20, Institute for Fiscal Studies.
    6. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January.
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    More about this item

    Keywords

    evaluation industrial policy logit italy survey deadweight displacement firms state aids grants demand evaluating;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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