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Interest rates and convergence across Italian regions

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  • Dow, Sheila
  • Montagnoli, Alberto
  • Napolitano, Oreste

Abstract

The purpose of this paper is to investigate the evidence for economic convergence across Italian regions using trends in interest rate spreads and premia as indicators of regional credit conditions. Our results indicate the presence of persistent interest rate differentials, and thus an absence of convergence across the twenty political regions, but we observe a high degree of convergence within the four macroeconomic areas. On the other hand we find evidence of a strong level of homogeneity in credit conditions within each of the four macroeconomic regions.

Suggested Citation

  • Dow, Sheila & Montagnoli, Alberto & Napolitano, Oreste, 2009. "Interest rates and convergence across Italian regions," Stirling Economics Discussion Papers 2009-13, University of Stirling, Division of Economics.
    • Handle: RePEc:stl:stledp:2009-13
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    File URL: http://hdl.handle.net/1893/1238
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    2. Philip Arestis & Giuseppe Fontana & Peter Phelps, 2017. "Regional financialisation and financial systems convergence: Evidence from Italy," Environment and Planning A, , vol. 49(1), pages 141-167, January.
    3. Handler, Heinz, 2013. "The eurozone: piecemeal approach to an optimum currency area," MPRA Paper 67183, University Library of Munich, Germany.
    4. David Bailey & Lisa de Propris, 2014. "Editorial: Recession, Recovery and Resilience?," Regional Studies, Taylor & Francis Journals, vol. 48(11), pages 1757-1760, November.
    5. Sheila Dow, 2016. "Ontology and Theory for a Redesign of European Monetary Union," World Economic Review, World Economics Association, vol. 2016(6), pages 1-1, February.
    6. Giannola, Adriano & Petraglia, Carmelo & Scalera, Domenico, 2016. "Net fiscal flows and interregional redistribution in Italy: A long-run perspective (1951–2010)," Structural Change and Economic Dynamics, Elsevier, vol. 39(C), pages 1-16.
    7. Kounetas, Kostas & Napolitano, Oreste, 2018. "Modeling the incidence of international trade on Italian regional productive efficiency using a meta-frontier DEA approach," Economic Modelling, Elsevier, vol. 71(C), pages 45-58.
    8. Bernardina Algieri & Antonio Aquino & Lidia Mannarino, 2018. "Non-Price Competitiveness and Financial Drivers of Exports: Evidences from Italian Regions," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 107-133, March.
    9. Sławomir Pastuszka & Jurand Skrzypek, 2017. "Konwergencja czy dywergencja regionów włoskich?," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 101-130.
    10. Kounetas, Kostas & Napolitano, Oreste, 2015. "Too much EMU? An investigation of technology gaps," MPRA Paper 67600, University Library of Munich, Germany.
    11. Luca Salvati & Margherita Carlucci & Giuseppe Venanzoni, 2017. "Recession, resilience, local labour markets: wealthier is better?," Letters in Spatial and Resource Sciences, Springer, vol. 10(2), pages 177-204, July.

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    Keywords

    interest rates; unit root; panel data; convergence; Italy;
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