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New evidence on State aid for firms in Italy

Author

Listed:
  • Giuseppe Albanese

    (Bank of Italy)

  • Rosalia Greco

    (Bank of Italy)

  • Luciano Lavecchia

    (Bank of Italy)

  • Marco Manile

    (Bank of Italy)

Abstract

The lack of detailed information on the firms profiting from incentives in Italy makes it very difficult to perform analyses of the characteristics of State aid in this country. To close this gap, this paper exploits a new database, the National State Aid Register, which provides detailed information on incentives falling within the perimeter of State aid in accordance with EU law. Our analysis for the years 2018-19 suggests that industrial policy in Italy is highly fragmented, with fewer resources utilized with respect to the European average. We also show that this aid has been primarily used for SMEs, and to a greater extent (as a ratio of turnover) for those in Southern Italy.

Suggested Citation

  • Giuseppe Albanese & Rosalia Greco & Luciano Lavecchia & Marco Manile, 2021. "New evidence on State aid for firms in Italy," Questioni di Economia e Finanza (Occasional Papers) 640, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_640_21
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2021-0640/QEF_640_21.pdf
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    More about this item

    Keywords

    state aids; Registro nazionale degli aiuti di Stato; industrial policy; incentives;
    All these keywords.

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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