Regional and National Industrial Policies in Italy, 1950s-1993. Where Did the Subsidies Flow?

This paper compares the magnitude and distribution of regional subsidies to Southern industry to those of subsidies available in the country as a whole through the national industrial policy. The comparison highlights the fact that from the second half of the 1970s, industry located in the most prosperous region of Italy, the North-West, was the main beneficiary of subsidised credit. These findings refine our understanding of the regional policy for Southern Italy and the reasons for its limited achievements. Moreover, the redirection of subsidies away from the South cast doubts on the extent of the Italian government's commitment to its programme of regional development.