The impact of a large industrial plant closure on the local economy

Francesco David ()
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Francesco David: Bank of Italy

No 952, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: The consequences for local economies of industrial crises and the closure of plants employing a large share of the workforce have only recently attracted attention in the literature. This study quantifies the long-term economic effects of an event that occurred in an area of Southern Italy specializing in motor vehicle production, by applying the synthetic control method. The closure of the FIAT plant in Termini Imerese (Sicily) has persistently lowered the employment level and rate, leading to a decline in the working-age population, disposable income and house prices.

Keywords: local development; local employment; deindustrialization; synthetic control (search for similar items in EconPapers)
JEL-codes: J60 R11 (search for similar items in EconPapers)
Date: 2025-07
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_952_25

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