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Place-Based Policies and the location of economic activity:evidence from the Italian Strategy for Inner areas

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  • Gianluca Monturano
  • Giuliano Resce
  • Marco Ventura

Abstract

This paper investigates the effects on the economic activities location of a specific governmental place-based policy, the Italian Strategy for Inner Areas (SNAI). Taking advantage of the most recent developments in the econometrics of policy evaluation, we apply a staggered difference-in-difference estimator to evaluate the impact of the public policy in terms of number of plants at municipal level. The analysis is made possible thanks to a detailed panel dataset containing information about Italian municipalities over the years 2014-2020. The results show that the policy has produced effects since its inception, generating a significant number of extra plants in the treated municipalities over the first two years. A further key issue is whether the policy has generated spillover effects on neighbours which may (in)validate the results obtained. To answer this question we propose an empirical strategy, joining the new estimator with spatial analysis, and we find no spillover effects

Suggested Citation

  • Gianluca Monturano & Giuliano Resce & Marco Ventura, 2022. "Place-Based Policies and the location of economic activity:evidence from the Italian Strategy for Inner areas," Working Papers in Public Economics 224, University of Rome La Sapienza, Department of Economics and Law.
  • Handle: RePEc:sap:wpaper:wp224
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    More about this item

    Keywords

    Rural development; Policy evaluation; Place-based policy; Event study analysis; Spillover effects;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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