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Public Spending And Regional Convergence In Italy

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  • Daniele VITTORIO

Abstract

This paper examines the relationship between public spending and regional growth in Italy in the period 1996-2007. The main results suggest that, in the period examined, a phase of RO and beta-convergence in productivity took place. Despite the profound regional disparities existing in Italy, the allocation of public spending calculated in per capita terms has favoured the most developed regions. When the entire sample of twenty regions is considered, no correlation between capital expenditure and productive growth is found. When the sample is split into Northern and Southern regions, differences in the links between public spending and productivity growth can be noted, however: only in the first group of regions, in fact, a significant, positive relationship between expenditure for development and growth can be found.

Suggested Citation

  • Daniele VITTORIO, 2009. "Public Spending And Regional Convergence In Italy," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(2(8)_Summ).
    • Handle: RePEc:ush:jaessh:v:4:y:2009:i:2(8)_summer2009:69
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    5. Federico Aresu & Emanuela Marrocu & Raffaele Paci, 2023. "Public capital and institutions' quality in the Italian regions," Journal of Regional Science, Wiley Blackwell, vol. 63(5), pages 1284-1308, November.

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