A Multilevel Analysis on the Economic Impact of Public Infrastructure and Corruption in Italian Regions

The IUP Journal of Infrastructure, Vol. IX, No. 1, pp. 17-51, March 2011

Posted: 20 Jun 2011

See all articles by Gianpiero Torrisi

Gianpiero Torrisi

University of Portsmouth - Faculty of Business - Department of Economics

Date Written: June 20, 2011

Abstract

The paper uses data from the Italian regional public accounts database to investigate and analyze the heterogeneity of the impact of public infrastructure across Italian regions, both on institutional and political grounds. Heterogeneity is addressed by linking the impact of infrastructure on Gross Domestic Product (GDP) with corruption by using a random coefficient panel data model. This paper considers a novel objective measure of corruption that consists of the difference between a measure of the physical quantities of public infrastructure and the cumulative price government pays for public capital stocks. Empirical analysis confirms the existence of parameter heterogeneity across Italian regions and is also consistent with the theoretical considerations that corruption negatively affects economic performance.

Suggested Citation

Torrisi, Gianpiero, A Multilevel Analysis on the Economic Impact of Public Infrastructure and Corruption in Italian Regions (June 20, 2011). The IUP Journal of Infrastructure, Vol. IX, No. 1, pp. 17-51, March 2011, Available at SSRN: https://ssrn.com/abstract=1868050

Gianpiero Torrisi (Contact Author)

University of Portsmouth - Faculty of Business - Department of Economics ( email )

Portsmouth PO4 8JF
United Kingdom

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