Growth, Congestion of Public Goods, and Second-Best Optimal Policy

This paper presents a general equilibrium endogenous growth model in which public spending is divided between public productive services and public consumption. A distinguishing feature of the model is the assumption that both components of public spending can be over used and, thus, congested by the private agents. We study the second-best dynamics of the model and prove that it is determinate. Moreover, we show that the optimal second-best policy could be not unique. Finally, the relationship between congestion and the optimal second-best policy, on the one hand, and congestion and the long run growth rate, on the other, is established.Endogenous growth, Congestion, Public spending, Second-Best

Internal Migration Across Italian regions: Macroeconomic Determinants and Accommodating Potential for a Dualistic Economy

We provide econometric evidence that relative per capita GDP and relative unemployment rates are the main determinants of migration flows across Italian regions from 1970 to 2002. The empirical analysis is based on an accurate study of the dynamic properties of the series. In fact, we deal with the issues of non-stationarity and cointegration and estimate an error correction model in which both the short- and long-run dynamics are modelled at once. The regional unemployment rate is robustly inversely related with net regional migration rate, while per capita GDP is strongly positively linked with it. As far as the accommodating potential of internal migration to regional unbalances, we have detected very little room for such a role. Indeed, the degree of labour mobility across Italian regions cannot be active as an effective equilibrating mechanism.Italy, Labour Migration, Internal Migration, Income Differences, Panel Cointegration

Remittances, economic complexity, and new firms’ creation: empirical evidence from a large sample of countries

One of the most debated issues in migration economics regards the effects of remittances in receiving countries. In this paper, we test whether the economic complexity of a country is relevant for understanding the impact of remittances on new firms’ birth. We find evidence that the impact of real per capita remittances on new firms’ creation is inversely mediated by economic complexity. More (less) complex economies generate opportunities to found new firms which need high (low) funding. Since economic complexity is positively correlated with economic development, remittances are more likely to facilitate the establishment of new firms in less developed economies rather than in more advanced ones. We also examine the link between remittances and new firm creation for Africa, Asia, Europe, and Latin America and the Caribbean countries, finding very heterogeneous patterns. Hence, policy implications aiming at attracting remittances to create new firms should respond to the challenges posed by specific countries and be tailored to their peculiar needs. Countries of origin should build institutions and facilitate the creation of networks to bridge the diaspora abroad with their home country to increase awareness of new business opportunities. Policy initiatives could spur investment in the formal economy by making regulations less stringent, discouraging the use of remittances for consumption purposes, reducing informality, improving competition, reducing remittance transfer costs, and giving incentives to new firms created through remittance

Does internal migration affect Italian domestic tourism? A panel data analysis

This paper proposes a dynamic panel data investigation on the role of interregional migration on Italian domestic tourism demand, using three panel estimators characterized by different homogeneity assumptions imposed on the parameters. A standard cointegration analysis is performed before proceeding to panel regressions. The results provide ample support for a strong positive relationship between per capita domestic tourism nights and per capita internal migration stock. This evidence extends the migration-tourism nexus, already established at the international level, to the intranational scale, and reinforces the idea that host regions should not overlook the role of migration when designing their tourism policies

The relationship between immigration and tourism firms

This article investigates whether the presence of immigrants represents an opportunity for Italian tourism firms to increase the number of establishments and their employees. To this scope, we focus on the hotels and restaurants sector where a great amount of revenues comes from the tourist expenditure. The investigation is conducted at both the nationwide level and, separately, for Centre-Northern and Southern provinces. As estimation technique, in order to deal with the potential endogeneity problem, we will proceed with the two-stage least square method. The results strongly support a positive relationship between the provincial share of immigrants and the number of tourism establishments and their employees. This relationship seems to be stronger for southern provinces

I flussi migratori interni ed internazionali dei laureati italiani

Sintesi. Vengono presentati gli ultimi dati disponibili relativi ai flussi migratori dei laureati tra le regioni italiane per gli anni 2000-2013 e si discutono quelli riferiti ai flussi migratori verso l’estero nel periodo 2004-2013. Dall’analisi emergono due elementi preoccupanti, da un lato la situazione drammatica per il Mezzogiorno in relazione al drenaggio di capitale umano rappresentato dai laureati verso il Centro-Nord e verso l’estero, dall’altro la perdita di laureati per le regioni del Centro-Nord determinata dall’emigrazione internazionale. Abstract. We present the latest available data on migration flows of graduates across Italian regions for the years 2000-2013 and the figures relating to international migration flows during the period 2004-2013. The analysis reveals two worrying data: on the one hand the dramatic situation for the South in relation to the drainage of human capital represented by graduates to both Centre-Northern regions of Italy and abroad, on the other the loss of graduates for the Centre-Northern regions determined by international emigration

HOW DOES INTERNAL MIGRATION BY EDUCATIONAL ATTAINMENT REACT TO REGIONAL UNBALANCES? THE CASE OF ITALY

Abstract We conduct an empirical investigation of the determinants of migration flows across Italian regions taking explicitly into account the educational attainment of migrants. We follow the standard macroeconomic migration theory and test what a role has been played by income and unemployment differentials. With the exception of graduate migration, for all educational levels relative per worker GDP is the most important variable in explaining internal migration during the 1995-2005 period. JEL Codes: J61, I21, R23

I flussi migratori interni ed internazionali dei laureati italiani

Sintesi. Vengono presentati gli ultimi dati disponibili relativi ai flussi migratori dei laureati tra le regioni italiane per gli anni 2000-2013 e si discutono quelli riferiti ai flussi migratori verso l’estero nel periodo 2004-2013. Dall’analisi emergono due elementi preoccupanti, da un lato la situazione drammatica per il Mezzogiorno in relazione al drenaggio di capitale umano rappresentato dai laureati verso il Centro-Nord e verso l’estero, dall’altro la perdita di laureati per le regioni del Centro-Nord determinata dall’emigrazione internazionale. Abstract. We present the latest available data on migration flows of graduates across Italian regions for the years 2000-2013 and the figures relating to international migration flows during the period 2004-2013. The analysis reveals two worrying data: on the one hand the dramatic situation for the South in relation to the drainage of human capital represented by graduates to both Centre-Northern regions of Italy and abroad, on the other the loss of graduates for the Centre-Northern regions determined by international emigration

Migration and Inbound Tourism: An Italian Perspective

This paper investigates the impact of migration on Italian inbound tourism flows in a dynamic panel data framework. Arrivals, expenditure and nights from 65 countries are analyzed for the period 2005-2011. The migration variable is defined at both origin and destination in order to assess the pushing and pulling forces. Estimates are performed using both aggregated flows and flows disaggregated to separate the VFRs from two non-VFR categories, namely holiday and business. The results suggest the presence of a strong migration-tourism nexus which clearly goes beyond visiting friends and relatives. Moreover, the effects of the different determinants vary according to the way in which the tourism market is segmented and, within each segment, to the way in which tourism demand is measured

Migration and Inbound Tourism: An Italian Perspective

This paper investigates the impact of migration on Italian inbound tourism flows in a dynamic panel data framework. Arrivals, expenditure and nights from 65 countries are analyzed for the period 2005-2011. The migration variable is defined at both origin and destination in order to assess the pushing and pulling forces. Estimates are performed using both aggregated flows and flows disaggregated to separate the VFRs from two non-VFR categories, namely holiday and business. The results suggest the presence of a strong migration-tourism nexus which clearly goes beyond visiting friends and relatives. Moreover, the effects of the different determinants vary according to the way in which the tourism market is segmented and, within each segment, to the way in which tourism demand is measured