Brown Bag Seminar: "The multi-regional impact of the CIS Taranto investment project using the multi-regional input-output model for Italy"

Speaker:  Darlington Agbonifi - University of Verona
  Tuesday, November 15, 2022 at 12:00 PM

Abstract: This study estimates the socio-economic impact of investments related to the Institutional Development Contract (CIS) for the city of Taranto on different categories of households, labor markets (skilled and unskilled), and enterprises in Italy implementing a multi-regional input-output (MRIO) model with inter-regional trade first at the level of Puglia, to estimate the intraregional impact, and, secondly, at the national level, to estimate the interregional spillover effects and the supply chain linkages. The intraregional effects are almost two times of the interregional effects. Almost 24 percent of the interregional impact accrues to Lombardy region and about 53 percent is captured by the regions in the North of Italy. This evidence clearly shows the good degree of connection of the local economy of the province of Taranto with the rest of the Puglia region, while it is quite weak with the regions of Southern Italy. The ratio between the impact on value added at the regional level and the overall investment, which belongs to the CIS, is just over 1.2 which reveals how much the investment is directed towards low value-added sectors. This study demonstrates how the analyzes on the impacts of the investments carried out, considering the territory on which they insist as an island and therefore not connected to the entire economic system, are inefficient, because they do not provide information on how much of the investment moves the economy outside the administrative limits of the reference input-output matrix. This is important in view of the evaluation of the impact of investments linked to the PNRR in order to understand the returns for local economies and direct them as much as possible towards those solutions that most incentivize local economies, especially in the regions of Southern Italy.

Programme Director
Maurizio Malpede

Publication date
November 14, 2022