Complementarities between public and private investment in Italian regions

Andrea Brasili; Cristina Brasili; Giorgio Musto; Annamaria Tueske

doi:10.14650/118066

Complementarities between public and private investment in Italian regions

Andrea Brasili, Cristina Brasili, Giorgio Musto, Annamaria Tueske

NOVA School of Business and Economics (NOVA SBE)

Research output: Contribution to journal › Article › peer-review

Abstract

This paper examines the role of local public investment in stimulating private investment and supporting economic growth and development. The analysis utilizes a combination of datasets to construct a balanced panel for 21 NUTS2 Italian regions from 2000 to 2019. Methodologically, we employ 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.

Original language	English
Pages (from-to)	237-264
Number of pages	28
Journal	Scienze Regionali
Volume	25
Issue number	2
DOIs	https://doi.org/10.14650/118066
Publication status	Published - 1 May 2026

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

Fiscal multipliers
Private investment
Regional public investment

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10.14650/118066

Cite this

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title = "Complementarities between public and private investment in Italian regions",

abstract = "This paper examines the role of local public investment in stimulating private investment and supporting economic growth and development. The analysis utilizes a combination of datasets to construct a balanced panel for 21 NUTS2 Italian regions from 2000 to 2019. Methodologically, we employ 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.",

keywords = "Fiscal multipliers, Private investment, Regional public investment",

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T1 - Complementarities between public and private investment in Italian regions

AU - Brasili, Andrea

AU - Brasili, Cristina

AU - Musto, Giorgio

AU - Tueske, Annamaria

N1 - Publisher Copyright: © Società editrice il Mulino

PY - 2026/5/1

Y1 - 2026/5/1

N2 - This paper examines the role of local public investment in stimulating private investment and supporting economic growth and development. The analysis utilizes a combination of datasets to construct a balanced panel for 21 NUTS2 Italian regions from 2000 to 2019. Methodologically, we employ 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.

AB - This paper examines the role of local public investment in stimulating private investment and supporting economic growth and development. The analysis utilizes a combination of datasets to construct a balanced panel for 21 NUTS2 Italian regions from 2000 to 2019. Methodologically, we employ 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.

KW - Fiscal multipliers

KW - Private investment

KW - Regional public investment

UR - https://www.scopus.com/pages/publications/105040692019

U2 - 10.14650/118066

DO - 10.14650/118066

M3 - Article

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SN - 1720-3929

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EP - 264

JO - Scienze Regionali

JF - Scienze Regionali

IS - 2

ER -

Complementarities between public and private investment in Italian regions

Abstract

UN SDGs

Keywords

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