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Past Dominations, Current Institutions and the Italian Regional Economic Performance

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  • Adriana Di Liberto
  • Marco Sideri

Abstract

We study the connection between economic performance and the quality of government institutions for the sample of 103 Italian NUTS3 regions, including new measures of institutional quality calculated using data on the provision of four areas of public service: health, educational infrastructures, environment and energy. In order to address likely endogeneity problems, we use the histories of the different foreign dominations that ruled Italian regions between the 16th and 17th century and over seven hundred years before the creation of the unified Italian State. Our results suggest a significant role of past historical institutions on the current public administration efficiency and show that the latter makes a difference to the economic performance of regions. Overall, our analysis confirms that informal institutions matter for development, and that history can be used to find suitable instruments.

Suggested Citation

  • Adriana Di Liberto & Marco Sideri, 2012. "Past Dominations, Current Institutions and the Italian Regional Economic Performance," DEGIT Conference Papers c017_022, DEGIT, Dynamics, Economic Growth, and International Trade.
    • Handle: RePEc:deg:conpap:c017_022
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    More about this item

    Keywords

    economic development; informal institutions; history;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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