The Role of Institutional Factors in Fostering the Development of Industrial Districts in Italy

Local Economies and Internationalization in Italy Conference, p. 187, 2003

26 Pages Posted: 12 Oct 2012

Date Written: November 20, 2003

Abstract

This paper aims at analysing the role of institutional factors in fostering the agglomeration of SMEs in Italian industrial districts. The main findings are: the availability of strong family institutions and a social environment reducing individual opportunism have played a significant role in nurturing local development through industrial agglomeration. There is no clear evidence, apart from the case when a more restrictive definition of industrial district is adopted, of a positive influence of a larger endowment in relational capital. Local government intervention, as measured by the proxy utilised in the study, does not appear to have played an important role in fostering industrial districts development. Apart from providing some empirical support to the thesis of the relevance of social institutions in promoting industrial agglomeration in Italy, the spatial econometric analysis revealed positive and significant spillover effects across neighbouring areas, an evidence consistent with the existence of a contagion process.

Suggested Citation

Di Giacinto, Valter and Nuzzo, Giorgio, The Role of Institutional Factors in Fostering the Development of Industrial Districts in Italy (November 20, 2003). Local Economies and Internationalization in Italy Conference, p. 187, 2003. Available at SSRN: https://ssrn.com/abstract=2160457 or http://dx.doi.org/10.2139/ssrn.2160457

Valter Di Giacinto

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Giorgio Nuzzo (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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