The economic impact of the Friuli-Venezia Giulia autonomy: a synthetic control analysis of asymmetric Italian federalism

Podestà, Federico

doi:10.1007/s00168-016-0779-0

Cited by 3 publications

(3 citation statements)

References 19 publications

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“…This implies that growth impacts may be clearly affected by the breadth and depth of institutional changes emanating from autonomy statutes adoption. Such analysis may also uncover some aspects of legislative and institutional instability across autonomous regions, which implies that the question to be asked upfront may be whether legislative and institutional stability has either growth‐enhancing or growth‐distorting effects (Abadie & Gardeazabal, 2003; Bardhan, 2002; Becker & Murphy, 1992; Chang et al, 2021; Dawson & Seater, 2013; De La Fuente et al, 2016; De Lucio & Mora‐Sanguinetti, 2022; Di Vita, 2017; Ferman & Pinto, 2017; Kirchner, 2012; Lago‐Peñas et al, 2019; Ministerio de Hacienda, 2017; Pepinsky & Wihardja, 2011; Podestà, 2017; Vallés‐Jiménez & Zárate‐Marco, 2012; Zabalza, 2014).…”

Section: Discussionmentioning

confidence: 99%

Economic effects of recent experiences of federalism: Analysis of the regionalization process in Spain

Mora‐Sanguinetti

Spruk

2022

Journal of Regional Science

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Setting limits on government action is critical to economic development. Some forms of government organization, such as market-preserving federalism, seem effective to protect property rights in the long term with good results for economic efficiency. Spain endowed its regions with "Statutes of Autonomy" in the 1980s thus moving from a centralized to a decentralized form of government. It renewed and expanded some of the statutes in the 2000s. This article investigates whether these two waves of regionalization, which had their own characteristics in each region, had led to positive effects on economic performance. Using a novel autonomous region/country-matched balanced sample for the period 1950-2016, we apply the synthetic control method and compare the economic growth trajectories of Spanish regions with their synthetic control groups not affected by the regionalization process. We show that the first wave of "Statutes of Autonomy" had a positive but temporary economic growth impact. By contrast, the second wave of regionalization of the 2000s is associated with a negative growth impact.

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Section: Discussionmentioning

confidence: 99%

Economic effects of recent experiences of federalism: Analysis of the regionalization process in Spain

Mora‐Sanguinetti

Spruk

2022

Journal of Regional Science

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“…This is not surprising, however, as this regions gained, exactly in 1963, its special status (see Podestà, 2017).…”

Section: Robustness Analysismentioning

confidence: 91%

Local secessions, homophily, and growth. A model with some evidence from the regions of Abruzzo and Molise (Italy, 1963)

Dalmazzo

Blasio

Poy

2018

Journal of Economic Behavior & Organization

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. ABSTRACT This paper analyses the case of a local secession, i.e. the birth of a new local jurisdiction by separation from an existing one. We present a stylized model in which society is composed of heterogeneous groups and individuals have an homophily bias. The model predicts that: i) separations, such as the split of a territory into distinct administrative units, occur when the costs of mixed communities are sufficiently large; ii) the smaller community drives the decision to secede; iii) welfare gains from the split are associated with positive population growth; iv) higher payoffs under separations, however, might be related to taste for sameness only, with no (or even negative) effect on economic growth. Then, we bring the model to the data by exploiting the secession of the Italian region of Molise from Abruzzo, a unique event in Italian history, which took place in 1963. Historical records document that the split was the result of pressures from Molise, the smaller community. Our evidence suggests that the split was associated with population inflows in both areas. Finally, the main empirical findings, derived by using a synthetic control approach, show that the split caused significant benefits, in both regions, in terms of per-capita GDP growth. Terms of use: Documents in

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“…Bähr (2008) argues that in 1975–1995 European Union structural funds were more effective in promoting economic growth in the more intensely federalized states of the 13 members investigated. Podestà (2017) uses synthetic control in the difference in difference method to evaluate the economic growth of the Italian Friuli‐Venezia Giulia region after it obtained autonomous status in 1964. He concludes that without autonomy the region would have grown significantly less.…”

Section: Related Literaturementioning

confidence: 99%

Thrive, survive, or perish: The impact of regional autonomy on the demographic dynamics of Italian Alpine territories

Matsiuk

2022

Journal of Regional Science

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Mountain communities face the threat of depopulation, as residents age or move to large cities in the lowland. This issue is pressing for Italy, where a large portion of the territory is mountainous and the overall population is rapidly aging. This paper analyses whether the autonomous status of a region affects the demographic dynamics of its mountain areas. The question is currently being fiercely debated in Italy, with border municipalities seeking to switch region in pursuit of perceived benefits, mainly in the form of the direct management of a larger portion of taxes. The analysis relies on an adjacency‐based estimation approach, including spatial regression discontinuity techniques, to compare population changes in mountain areas randomly selected from Northern Italian regions with special statutes versus neighboring regions without special statute. Measuring population changes in the 2000s shows a significant difference in the demographic dynamics in border regions, with areas in autonomous regions experiencing more favorable population dynamics. Our hypothesis is that fiscal autonomy contributes to sustainable local development and the survival of mountain communities.

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The economic impact of the Friuli-Venezia Giulia autonomy: a synthetic control analysis of asymmetric Italian federalism

Cited by 3 publications

References 19 publications

Economic effects of recent experiences of federalism: Analysis of the regionalization process in Spain

Economic effects of recent experiences of federalism: Analysis of the regionalization process in Spain

Local secessions, homophily, and growth. A model with some evidence from the regions of Abruzzo and Molise (Italy, 1963)

Thrive, survive, or perish: The impact of regional autonomy on the demographic dynamics of Italian Alpine territories

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