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Regional inequality in Italy in the face of economic crises, recovery, and the health emergency

Antonio Accetturo (), Giuseppe Albanese (), Rosario M. Ballatore (), Tiziano Ropele () and Paolo Sestito
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Rosario M. Ballatore: Bank of Italy
Tiziano Ropele: Bank of Italy

No 685, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The aim of this paper is to provide an updated overview of the economic divide between the South and the Centre-North of Italy from 2007 onwards. We show that the double-dip recession (2008-09 and 2012-13) has widened the gap between the two areas. The sharpest fall in GDP in the South was caused by a marked drop in investment and is associated with less favourable labour market trends. The production base of southern Italy - which has not undergone the same level of restructuring as the rest of the country - remains unfit to compete in a globalized world. The recent COVID-19 pandemic may have more long-lasting negative consequences in the South due to the fragility of its economy.

Keywords: regional inequality; Mezzogiorno (search for similar items in EconPapers)
JEL-codes: O18 R11 R12 (search for similar items in EconPapers)
Date: 2022-04
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