This paper investigates the role of local public investment in stimulating private investment and supporting economic growth and development. The analysis iutilizes a combination of datasets to construct a balanced panel for 21 NUTS2 Italian regions from 2000 to 2019. Methodologically, we employed both PVARs and local projections to enhance the robustness of our results. Our main findings indicate that locally determined public investment is positively correlated with private investment in the same region, with evidence suggesting a causal relationship. The impact is particularly pronounced for public investment in Education, Training and R&D.
Brasili, A., Brasili, C., Musto, G., Tueske, A. (2026). Complementarities between Public and Private Investment in Italian Regions. SR SCIENZE REGIONALI, 25(2), 237-264 [10.14650/118066].
Complementarities between Public and Private Investment in Italian Regions
Brasili C.Secondo
Membro del Collaboration Group
;
2026
Abstract
This paper investigates the role of local public investment in stimulating private investment and supporting economic growth and development. The analysis iutilizes a combination of datasets to construct a balanced panel for 21 NUTS2 Italian regions from 2000 to 2019. Methodologically, we employed both PVARs and local projections to enhance the robustness of our results. Our main findings indicate that locally determined public investment is positively correlated with private investment in the same region, with evidence suggesting a causal relationship. The impact is particularly pronounced for public investment in Education, Training and R&D.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
