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Place-based Policy and Local TFP

Author

Listed:
  • Giuseppe Albanese

    (Bank of Italy)

  • Guido de Blasio

    (Bank of Italy)

  • Andrea Locatelli

    (Bank of Italy)

Abstract

Total Factor Productivity (TFP) explains most of the differences in income levels between territories. A major policy issue is whether place-based policies are capable of promoting TFP growth in backward areas. We provide some evidence of the effect of the European Regional Development Fund (ERDF) on local TFP growth in Southern Italy. Although TFP growth is on average rather unresponsive to EU programs, we provide some evidence of a positive effect for ERDF infrastructure investments and for areas with higher institutional quality and population density.

Suggested Citation

  • Giuseppe Albanese & Guido de Blasio & Andrea Locatelli, 2019. "Place-based Policy and Local TFP," Temi di discussione (Economic working papers) 1253, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_1253_19
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/temi-discussione/2019/2019-1253/en_tema_1253.pdf
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    References listed on IDEAS

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    1. Peiró-Palomino, Jesús & Perugini, Francesco, 2022. "Regional innovation disparities in Italy: The role of governance," Economic Systems, Elsevier, vol. 46(4).

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    More about this item

    Keywords

    ERDF programs; TFP; manufacturing firms;
    All these keywords.

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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