Macroeconometric modelling for evaluationg the policy impact on growth in dualistic countries: the case of Southern Italian Regions

Stefania P.S. Rossi (), Guido Pellegrini and Ornella Tarola
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Stefania P.S. Rossi: https://econ.univie.ac.at

Vienna Economics Papers from University of Vienna, Department of Economics

Abstract: Can policies accelerate the convergence path of dualistic economic growth in a single country, offsetting market failures and making growth transmission channels more efficient? A structural dynamic econometric model, has been set up in order to account for these changes. Three are the main sources of growth playing a role in this context: the “neighbourhood” effect, the interaction between the economic environment and the agents' expectations, and the policy impact on economic take-off. The evidence shows that policies strongly boost economic growth of a local area and narrow the gap between the regions of a dual economy.

JEL-codes: C50 C52 O47 (search for similar items in EconPapers)
Date: 2006-07
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