Investment and investment financing in Italy: some evidence at the macro level

Claire Giordano, Marco Marinucci and Andrea Silvestrini ()
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Andrea Silvestrini: Banca d'Italia

No 307, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: We analyse the developments of investment and investment financing in Italy since 1995, based on data from national accounts and the flow of funds. The exceptional fall in investment after the global financial crisis in 2007 concerned all institutional sectors and asset categories. However, appropriately deflated data highlight the more intense fall of household capital expenditure. Consistently, on the asset side, construction was one of the most hard-hit capital goods; ICT and intangible investment instead weathered the double recession better. Focusing on investment financing, the eruption of the crisis caused a major contraction in the availability of external finance for non-financial corporations and households. Long-term loans to non-financial corporations became more important, crowding out their short-term counterparts. Also the weight of debt securities increased significantly, especially after 2008.

Keywords: gross fixed capital formation; investment financing; national accounts; financial accounts (search for similar items in EconPapers)
JEL-codes: E22 G01 G31 G32 (search for similar items in EconPapers)
Date: 2016-02
New Economics Papers: this item is included in nep-acc and nep-mac
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_307_16

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