The Big Players in Italian Local Public Services - Constraints, Opportunities and Growth Strategies

Posted: 16 Feb 2009

Date Written: September 22, 2008

Abstract

One of the objectives of the reforms and liberalization of the last 15 years in local public services was to reduce the traditional fragmentation of production. This was to be achieved through restructuring that reduced inefficiencies and made it more possible to exploit economies of scale, thereby stimulating the emergence of national "big players". In this paper we analyze the evolution and current position of the largest operators that have emerged in the different sectors of local public services. The aim is to identify factors that have helped or hindered the growth process. Through an analysis of twelve among the largest businesses we identify four evolutionary paths. In our view the main drivers have been: a) a presence in the energy sector (mainly due to its high profitability); b) a favourable local political framework; and c) a tradition of efficient internal organization and independence of local politics.

Keywords: local public services, liberalization, growth strategies

JEL Classification: L11, L21, L25, L90

Suggested Citation

Bianco, Magda and Mele, Daniela and Sestito, Paolo, The Big Players in Italian Local Public Services - Constraints, Opportunities and Growth Strategies (September 22, 2008). Bank of Italy Occasional Paper No. 26. Available at SSRN: https://ssrn.com/abstract=1344258 or http://dx.doi.org/10.2139/ssrn.1344258

Magda Bianco (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Daniela Mele

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Paolo Sestito

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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