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Macroeconometric modelling for evaluationg the policy impact on growth in dualistic countries: the case of Southern Italian Regions

Can policies accelerate the convergence path of dualistic economic growth in a single country, offsetting market failures and making growth transmission channels more efficient? A structural dynamic econometric model, has been set up in order to account for these changes. Three are the main sources of growth playing a role in this context: the “neighbourhood” effect, the interaction between the economic environment and the agents' expectations, and the policy impact on economic take-off. The evidence shows that policies strongly boost economicgrowth of a local area and narrow the gap between the regions of a dual economy.

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File URL: http://homepage.univie.ac.at/Papers.Econ/RePEc/vie/viennp/vie0607.pdf
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Paper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0607.

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Date of creation: Jul 2006
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Handle: RePEc:vie:viennp:0607
Contact details of provider: Web page: http://www.univie.ac.at/vwl

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  1. Martin, Philippe, 1999. "Public policies, regional inequalities and growth," Journal of Public Economics, Elsevier, vol. 73(1), pages 85-105, July.
  2. Heim, Carol E, 1996. "Accumulation in Advanced Economies: Spatial, Technological, and Social Frontiers," Cambridge Journal of Economics, Oxford University Press, vol. 20(6), pages 687-714, November.
  3. Sergio T. Rebelo, 1990. "Long Run Policy Analysis and Long Run Growth," NBER Working Papers 3325, National Bureau of Economic Research, Inc.
  4. Acemoglu, Daron, 1997. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality," CEPR Discussion Papers 1707, C.E.P.R. Discussion Papers.
  5. Murphy, Kevin M. & Shleifer, Andrei & Vishny, Robert W., 1989. "Industrialization and the Big Push," Scholarly Articles 3606235, Harvard University Department of Economics.
  6. Jonathan Temple, 2005. "Dual Economy Models: A Primer For Growth Economists," Manchester School, University of Manchester, vol. 73(4), pages 435-478, 07.
  7. Magnus Blomstrom & Edward N. Wolff, 1993. "Growth in a Dual Economy," NBER Working Papers 4433, National Bureau of Economic Research, Inc.
  8. Daron Acemoglu, 2001. "Directed Technical Change," NBER Working Papers 8287, National Bureau of Economic Research, Inc.
  9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  10. Jovanovic, Boyan & Nyarko, Yaw, 1994. "The Bayesian Foundations of Learning by Doing," Working Papers 94-15, C.V. Starr Center for Applied Economics, New York University.
  11. Greenwood, J. & Hercowitz, Z. & Krusell, P., 1998. "The Role of Investment-Specific Technological Change in the Business Cycle," RCER Working Papers 449, University of Rochester - Center for Economic Research (RCER).
  12. Stiglitz, Joseph E, 1974. "Alternative Theories of Wage Determination and Unemployment in LDC'S: The Labor Turnover Model," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 194-227, May.
  13. R. Paci & F. Pigliaru, 1997. "Is dualism still a source of convergence in Europe?," Working Paper CRENoS 199705, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  14. Bradley, John & Whelan, Karl & Wright, Jonathan, 1995. "HERMIN Ireland," Economic Modelling, Elsevier, vol. 12(3), pages 249-274, July.
  15. Modesto, Leonor & Neves, Pedro D., 1995. "HERMIN Portugal," Economic Modelling, Elsevier, vol. 12(3), pages 275-294, July.
  16. Claudio Cicinelli & Andrea Cossio & Francesco Nucci & Ottavio Ricchi & Cristian Tegami, . "The Italian Treasury Econometric Model (ITEM)," Working Papers wp2008-1, Department of the Treasury, Ministry of the Economy and of Finance.
  17. Parente, Stephen L & Prescott, Edward C, 1994. "Barriers to Technology Adoption and Development," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 298-321, April.
  18. Martin, Philippe & Rogers, Carol Ann, 1995. "Industrial location and public infrastructure," Journal of International Economics, Elsevier, vol. 39(3-4), pages 335-351, November.
  19. Palivos, Theodore & Wang, Ping, 1996. "Spatial agglomeration and endogenous growth," Regional Science and Urban Economics, Elsevier, vol. 26(6), pages 645-669, December.
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