Political favouritism and inefficient management: Policy-makers’ birth town bias in EU quality certifications

Giuliano Resce () and Cristina Vaquero-Piñeiro

Journal of Policy Modeling, 2024, vol. 46, issue 3, 683-702

Abstract: In the current era of EU-driven strategies for sustainable local development, the EU Commission has designated the geographical indication (GI) policy as a flagship initiative in 2024. The certification procedure has been simplified, with increased involvement from national and local authorities. This study explores the potential impact of reforms on GIs in Italy, focusing on whether the birthplaces of regional council members receive preferential acknowledgment. Analysing municipal-level data, we employ a Difference in Differences approach and machine learning for counterfactual analysis. Results indicate a higher likelihood of GIs for councillors' birth municipalities, particularly in areas with lower ex-ante institutional quality. These findings underscore the potential consequences of EU reform, warning against political favouritism and inefficient policy management.

Keywords: Political economy; Geographical indications; Political representation; Electoral success; Local development (search for similar items in EconPapers)
JEL-codes: D72 L66 Q18 R11 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:46:y:2024:i:3:p:683-702

DOI: 10.1016/j.jpolmod.2024.03.004

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