Local Development that Money Can't Buy: Italy's Contratti Di Programma
42 Pages Posted: 21 Jun 2013
Date Written: June 20, 2013
The paper evaluates the effectiveness of a major Italian place-based policy (Contratti di Programma), by means of which the state approves and finances industrial projects proposed by private firms. Using the areas to be exposed to the same policy at a later date as counterfactuals, the study finds little evidence of it having had a positive effect. It estimates a limited impact on plant and employment growth rates, which is confined to a small area (a single municipality) and crowds out the economic growth of the surrounding areas.
Keywords: regional economic activity, location-based policies, program evaluation
JEL Classification: R11, R58, C14
Suggested Citation: Suggested Citation