This paper examines the relationship between public spending and regional growth in Italy in the period 1996-2007. The main results suggest that, in the period examined, a phase of RO and beta-convergence in productivity took place. Despite the profound regional disparities existing in Italy, the allocation of public spending calculated in per capita terms has favoured the most developed regions. When the entire sample of twenty regions is considered, no correlation between capital expenditure and productive growth is found. When the sample is split into Northern and Southern regions, differences in the links between public spending and productivity growth can be noted, however: only in the first group of regions, in fact, a significant, positive relationship between expenditure for development and growth can be found.
Italy, regional convergence, development policy, public spending
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