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The Intra and Multi-Regional Impact of a Local PNRR Project using a Multi-Regional SAM Model of Italy

Author

Listed:
  • Darlington Agbonifi

    (Department of Economics, University of Verona)

  • Daniele Cufari

    (Department of Economics, University of Verona)

  • Riccardo Magnani
  • Francesco Pecci
  • Federico Perali

    (Department of Economics, University of Verona)

  • Pasquale Lucio Scandizzo

Abstract

This study estimates the socio-economic impact of investments related to the Institutional Development Contract (CIS) for the city of Taranto on different categories of households, labor markets (skilled and unskilled), and enterprises in Italy by developing a multi-regional SAM (MR-SAM) model with inter-regional trade. The model is designed and implemented both at the level of Apulia region, to estimate the intraregional impact, and at the national level, to estimate the interregional spillover effects and the supply chain linkages. The study finds that the interregional effects are more than one half of the intraregional ones, with more than 26 percent of the interregional impact accruing to the Lombardy region and about 60 percent captured by the regions in the North of Italy. The model also shows that while the local Taranto economy is highly connected with the rest of the Apulia region, it has only weak linkages with the regions of Southern Italy. The ratio between the impact on added value at the national level and the total investment of the CIS is slightly more than 2. The study also suggests that impact analyses considering the area on which the public investment is developed as an island unconnected to the entire economic system may be misleading, because they provide no information about the propagation of the effects outside the administrative limits of the local economy, even though these effects may be crucial to fuel a desirable regional distribution of economic growth.

Suggested Citation

  • Darlington Agbonifi & Daniele Cufari & Riccardo Magnani & Francesco Pecci & Federico Perali & Pasquale Lucio Scandizzo, 2023. "The Intra and Multi-Regional Impact of a Local PNRR Project using a Multi-Regional SAM Model of Italy," Working Papers 15, SITES.
    • Handle: RePEc:awm:wpaper:15
    Note: SITES Working Papers 15
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    References listed on IDEAS

    as
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    3. Alessandra Pasquini & Furio Camillo Rosati, 2020. "A Human Capital Index for the Italian Provinces," CEIS Research Paper 494, Tor Vergata University, CEIS, revised 17 Jun 2020.
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    More about this item

    Keywords

    Interregional trade; multi-regional input-output (MR-SAM) analysis; PNRR; Taranto (Apulia; Italy);
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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