AbstractThis paper employs a quantitative analysis of the disputes between central and regional government concerning the role of the Italian Constitutional Court, focusing on the context of decentralization initiated during the late 1990s. The econometric evidence demonstrates a significant decrease in favourable outcomes for regional governments following the process of recentralization, which was commenced by central government in 2011 in response to a major financial crisis. The results of this study support the perspective of a centralistic attitude of the courts in litigation concerning subnational governments and provide fresh insights into the role of the courts in the relationship between recentralization and major economic crises.
PurposeThis paper investigates whether and to what extent operating in inner areas affects the profitability of innovative Italian small and medium-sized enterprises (SMEs) over 2012–2018.Design/methodology/approachGuided by the National Strategy for Inner Areas and the "Investment Compact," this study distinguishes between inner and core innovative SMEs. It employs various econometric models to estimate a regression for the return on assets of SMEs, differentiating between firms operating in inner and non-inner areas of northwest, northeast, centre and south Italy.FindingsFindings reveal that innovative SMEs in inner areas generally exhibit lower profitability compared to those in non-inner municipalities. However, huge heterogeneity in results is observed across the country. Specifically, innovative SMEs in the inner areas of the south register lower profitability than those operating in non-inner zones. Conversely, innovative SMEs located in the inner municipalities of northwest and northeast Italy show higher profitability than their peers in non-inner areas. The results imply that targeted policies for inner areas are crucial. However, due to the diversity of local impacts, a differentiated approach, depending on the geographic context, is necessary.Originality/valueThe study aims to explore the relationship between inner areas and the performance of innovative SMEs in Italy. More precisely, it examines the effect of operating in a municipality located within an inner area on the profitability of innovative SMEs. This issue has been overlooked in existing literature. Importantly, we aim to determine whether there is a heterogeneous impact based on geographical localisation, specifically in the Northwest, the Northeast, the Centre and the South of the country. Therefore, this paper contributes to the literature by investigating the factors influencing the performance of innovative SMEs and suggesting new policy recommendations for developing inner areas in Italy.
PurposeThis study explores whether ethnic minorities exhibit varying levels of income inequality compared to the host population.Design/methodology/approachThe research leverages a unique immigration event in Italy, specifically the settlement of multiple Albanian groups in southern Italy during the 16th century. This historical occurrence enables an investigation into the role of cultural traits in income inequality, as these groups are situated in the same geographical region and often share borders.FindingsThe results, which remain consistent after undergoing various robustness checks, indicate that Albanian villages, while still preserving their identity and tradition, tend to experience an approximately 2% lower level of income concentration compared to similar Italian municipalities.Originality/valueOur findings aim to provide supporting evidence for future policy considerations regarding the long-term impact of immigration on income inequality.
AbstractThis work empirically investigates Italian cooperative banks (BCCs) as a driver of new business creation in the Italian provinces over the period 2003–12. The results show that the presence of BCCs positively and significantly affects firms' entry rates. We also find that the impact of BCCs diffusion on birth rate tends to be stronger for high tech industries during the pre‐crisis years, whilst it appears larger for low‐tech sectors when considering the post‐crisis period. This evidence suggests that BCCs might play a relevant role in financing innovative and risky firms—though, when banks' risk‐aversion increases, BCCs tend, unsurprisingly, to downsize the financing of riskier projects.
