Deregulation and Growth in Italy

Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 3

30 Pages Posted: 5 Jun 2014 Last revised: 8 Aug 2014

See all articles by Cristina Mocci

Cristina Mocci

Ministry of Economy and Finance, Italy

Stefania Pozzuoli

Ministry of Economy and Finance, Italy

Francesca Romagnoli

Ministry of Economy and Finance, Italy

Cristina Tinti

Ministry of Economy and Finance, Italy

Multiple version iconThere are 3 versions of this paper

Date Written: july 16, 2014

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 positive 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.

Keywords: Regulation, sector analysis, growth

JEL Classification: O40, L51, L80

Suggested Citation

Mocci, Cristina and Pozzuoli, Stefania and Romagnoli, Francesca and Tinti, Cristina, Deregulation and Growth in Italy (july 16, 2014). Government of the Italian Republic (Italy), Ministry of Economy and Finance, Department of the Treasury Working Paper No. 3. Available at SSRN: https://ssrn.com/abstract=2445863

Cristina Mocci (Contact Author)

Ministry of Economy and Finance, Italy ( email )

Via XX Settembre 97
Rome, Rome 00187
Italy

Stefania Pozzuoli

Ministry of Economy and Finance, Italy ( email )

Via XX Settembre 97
Rome, Rome 00187
Italy

Francesca Romagnoli

Ministry of Economy and Finance, Italy ( email )

Via XX Settembre 97
Rome, Rome 00187
Italy

Cristina Tinti

Ministry of Economy and Finance, Italy ( email )

Via XX Settembre 97
Rome, Rome 00187
Italy

Register to save articles to
your library

Register

Paper statistics

Downloads
50
Abstract Views
503
PlumX Metrics