The Intra and Multi-Regional Impact of a Local PNRR Project using a Multi-Regional SAM Model of Italy

Darlington Agbonifi, Daniele Cufari, Riccardo Magnani, Francesco Pecci, Federico Perali and Pasquale Scandizzo
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Darlington Agbonifi: Department of Economics, University of Verona
Daniele Cufari: Department of Economics, University of Verona

No 15, Working Papers from SITES

Abstract:

This study estimates the socio-economic impact of investments related to the Institutional Development Contract (CIS) for the city of Taranto on different categories of households, labor markets (skilled and unskilled), and enterprises in Italy by developing a multi-regional SAM (MR-SAM) model with inter-regional trade. The model is designed and implemented both at the level of Apulia region, to estimate the intraregional impact, and at the national level, to estimate the interregional spillover effects and the supply chain linkages. The study finds that the interregional effects are more than one half of the intraregional ones, with more than 26 percent of the interregional impact accruing to the Lombardy region and about 60 percent captured by the regions in the North of Italy. The model also shows that while the local Taranto economy is highly connected with the rest of the Apulia region, it has only weak linkages with the regions of Southern Italy. The ratio between the impact on added value at the national level and the total investment of the CIS is slightly more than 2. The study also suggests that impact analyses considering the area on which the public investment is developed as an island unconnected to the entire economic system may be misleading, because they provide no information about the propagation of the effects outside the administrative limits of the local economy, even though these effects may be crucial to fuel a desirable regional distribution of economic growth.

Keywords: Interregional trade; multi-regional input-output (MR-SAM) analysis; PNRR; Taranto (Apulia; Italy) (search for similar items in EconPapers)
JEL-codes: C67 D57 F14 Q56 Q58 R15 (search for similar items in EconPapers)
Date: 2023-03
New Economics Papers: this item is included in nep-geo and nep-ure
Note: SITES Working Papers 15
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