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Deregulation and growth in Italy

Author

Listed:
  • Cristina Mocci
  • Stefania Pozzuoli
  • Francesca Romagnoli
  • Cristina Tinti

Abstract

The aim of this study is to assess the effects of anti-competitive service regulation on economic performance in Italy. This paper runs a cross-sector panel regression of the Italian value added growth on the OECD PMR sectoral regulation indicators (ETCR and RBSR) in the 1995-2008 period using the national Input-Output matrix. This analysis enriches the empirical understanding of the effects of regulation on national value added growth with relevant implications for policy making. The results prove that in Italy sectoral liberalization on total economy and manufacturing played a relevant role in increasing the value added. We find a negative and statistically significant relationship between the overall liberalization of services, as well as in Energy and Professions, and the performance of the whole economy and manufacturing sector in the considered period. Being Italy among the countries with a significant difference between the regulation (PMR) and the business perception (EFW-DB) indicators, this paper provides a sense of this misalignment in the years of the panel. In particular, evidence shows that economic agents reacted positively to reforms related to state participation (Post, Telecom, Railways) and simplification of paperwork for start-ups in Italy.

Suggested Citation

  • Cristina Mocci & Stefania Pozzuoli & Francesca Romagnoli & Cristina Tinti, 2014. "Deregulation and growth in Italy," Working Papers 3, Department of the Treasury, Ministry of the Economy and of Finance.
    • Handle: RePEc:itt:wpaper:wp2014-3
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    References listed on IDEAS

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    Cited by:

    1. Oliver Arentz & Clemens Recker & Leonhard Münstermann & Steffen J. Roth, 2015. "Der Dienstleistungssektor in Deutschland: Überblick und Deregulierungspotenziale," Otto-Wolff-Institut Discussion Paper Series 01/2015, Otto-Wolff-Institut für Wirtschaftsordnung, Köln, Deutschland.

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    More about this item

    Keywords

    Regulation; sector analysis; growth;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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