Showing papers by "Margherita Scarlato published in 2001"
01 Jan 2001
TL;DR: In this article, the authors show that in the less developed regions of Italy, the so-colled Mezzogiorno, the level of social capital is lower compared to the advanced regions and, at the same time, the productive activities born a smaller share of the cost due to the social capital deficit.
Abstract: This work provides some evidence for the Italian regions that social capital, under a broad definition, can have a positive impact on development outcomes. Our empirical analysis includes measures of social capital related to the enforcement of formal norms, the extent of social networks, the provision of local public goods. We show that in the less developed regions of Italy, the so-colled Mezzogiorno, the level of social capital is lower compared to the advanced regions and, at the same time, the productive activities born a smaller share of the cost due to the social capital deficit. This result leads to a «wrong» incentive towards the underinvestment in social capital and locks the Southern regions in a trap at a low level of both economic development and social capital development. Absent suitable shocks or policy interventions, this out-come is self-reinforcing.
8 citations
Posted Content•
01 Jan 2001
TL;DR: In this paper, the authors analyse the decision process of the economic agents to migrate from the underground to the official sector in a dynamic framework with externalities and multiple equilibria, and provide some insights that could be useful for a policy aimed to attract firms away from the shadow economy.
Abstract: In the so-called Mezzogiorno of Italy the size of the underground economy is very large, accounting for almost two-fifth of the employment in the industrial sector. The goal of this paper is to analyse the decision process of the economic agents to migrate from the underground to the official sector in a dynamic framework with externalities and multiple equilibria. We then provide some insights that could be useful for a policy aimed to attract firms away from the shadow economy.
3 citations