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Local development that money can�t buy: Italy�s Contratti di Programma

Author

Listed:
  • Monica Andini

    (Bank of Italy)

  • Guido de Blasio

    (Bank of Italy)

Abstract

The paper evaluates the effectiveness of a major Italian place-based policy (Contratti di Programma), by means of which the state approves and finances industrial projects proposed by private firms. Using the areas to be exposed to the same policy at a later date as counterfactuals, the study finds little evidence of it having had a positive effect. It estimates a limited impact on plant and employment growth rates, which is confined to a small area (a single municipality) and crowds out the economic growth of the surrounding areas.

Suggested Citation

  • Monica Andini & Guido de Blasio, 2013. "Local development that money can�t buy: Italy�s Contratti di Programma," Temi di discussione (Economic working papers) 915, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_915_13
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    File URL: http://www.bancaditalia.it/pubblicazioni/temi-discussione/2013/2013-0915/en_tema_915.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    regional economic activity; location-based policies; program evaluation;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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