Productivity Growth in Italy: A Tale of a Slow-Motion Change

100 Pages Posted: 26 Feb 2018

See all articles by Matteo Bugamelli

Matteo Bugamelli

Bank of Italy

Francesca Lotti

Bank of Italy

Monica Amici

Bank of Italy

Emanuela Ciapanna

Bank of Italy

Fabrizio Colonna

Bank of Italy

Francesco D’Amuri

Bank of Italy; University of Essex - Institute for Social and Economic Research (ISER)

Silvia Giacomelli

Bank of Italy

Andrea Linarello

Bank of Italy

Francesco Manaresi

Bank of Italy

Giuliana Palumbo

Bank of Italy

Filippo Scoccianti

Bank of Italy

Enrico Sette

Bank of Italy

Date Written: January 29, 2018

Abstract

Productivity is the main factor holding back long-term economic growth in Italy. Since the second half of the 1990s, productivity growth has been feeble both by historical standards and compared with the other main euro area countries. Understanding the reasons for such a performance and finding the most effective policy levers is crucial to increase Italy’s potential growth rate. Against this background, we provide a detailed analysis of the data and a critical review of the available empirical evidence to identify both the structural weaknesses limiting productivity growth and the strengths of the Italian productive system that may support it looking forward. Since the end of the 1990s and more intensively since the second half of 2011, the reform effort has been particularly effective in the regulation of product and labor markets and industrial policy. On other factors which are very relevant for productivity dynamics, the reform action has been less effective so far.

Keywords: productivity, growth, business dynamics, innovation, human capital, labor, finance, regulation, policies

JEL Classification: D0, E0, F0, G0, H0, J08, K0, L0

Suggested Citation

Bugamelli, Matteo and Lotti, Francesca and Amici, Monica and Ciapanna, Emanuela and Colonna, Fabrizio and D’Amuri, Francesco and Giacomelli, Silvia and Linarello, Andrea and Manaresi, Francesco and Palumbo, Giuliana and Scoccianti, Filippo and Sette, Enrico, Productivity Growth in Italy: A Tale of a Slow-Motion Change (January 29, 2018). Bank of Italy Occasional Paper No. 422. Available at SSRN: https://ssrn.com/abstract=3128850 or http://dx.doi.org/10.2139/ssrn.3128850

Matteo Bugamelli

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Francesca Lotti (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Monica Amici

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Emanuela Ciapanna

Bank of Italy ( email )

Research Department
Via Nazionale 91
Roma, 00184
Italy
00390647922188 (Phone)

Fabrizio Colonna

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Francesco D’Amuri

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Silvia Giacomelli

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Andrea Linarello

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Francesco Manaresi

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Giuliana Palumbo

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Filippo Scoccianti

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Enrico Sette

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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