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The Economic Impact of Cooperation in the Province of Trento

57 Pages Posted: 10 Aug 2010  

Carlo Borzaga

Università degli Studi di Trento; European Research Institute on Cooperative & Social Enterprises (EURICSE)

Eddi Fontanari

European Research Institute on Cooperative & Social Enterprises (EURICSE)

Date Written: July 1, 2010

Abstract

The paper evaluates the economic role of the cooperative system in the province of Trento, Italy. The originality of the paper consists in the approach followed: it takes into account not only the direct value of the production of cooperatives, but also the indirect and induced value generated by the system. The indirect value is calculated as the non-cooperative production used as inputs by the cooperative system; the induced value is calculated as the non-cooperative outcome that is however generated by direct and indirect incomes gathered by the cooperative system. The paper introduces an input-output analysis and reproduces a “satellite” matrix in order to quantify the three types of impact. By using economic data from the Province of Trento from 2005, it comes to individuate a well-developed and consolidated cooperative system, involving 623 firms and 229 thousand members, with a total capital of 2 billion Euros and a production value equal to 3,259 billion Euros. The paper studies these and other values in depth and extracts some specific indexes for the evaluation of indirect and induced impacts. It concludes that, while cooperatives in the Province of Trento represent just 1% of the total number of local firms, they generate 13% of the total value of production and account for 15% of local employment. The presence of a system of organizations that are well-rooted in the local environment significantly contributes to the production of well-being, stability, and growth of the local economy.

Notes: Downloadable document is in Italian.

Keywords: cooperatives, productivity, input-output analysis

JEL Classification: E23, L22, R11

Suggested Citation

Borzaga, Carlo and Fontanari, Eddi, The Economic Impact of Cooperation in the Province of Trento (July 1, 2010). Euricse Working Papers No. 009|10. Available at SSRN: https://ssrn.com/abstract=1655661 or http://dx.doi.org/10.2139/ssrn.1655661

Carlo Borzaga (Contact Author)

Università degli Studi di Trento ( email )

Via Giuseppe Verdi 26
Trento, Trento 38152
Italy

European Research Institute on Cooperative & Social Enterprises (EURICSE) ( email )

Via S. Giovanni 36
38122 Trento (TN)
Italy

Eddi Fontanari

European Research Institute on Cooperative & Social Enterprises (EURICSE) ( email )

Via S. Giovanni 36
38122 Trento (TN)
Italy

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