La struttura degli incentivi agli investimenti delle imprese nelle aree depresse: una valutazione critica della legge 488/92

The article analyses the structure of Italian incentives for investment projects in depressed areas of the country which came into force in 1996. The article stresses a variety of weaknesses of this structure. An adequate consideration of the issue of the formation of rents and the additionality of investments appears lacking. The set of the indicators used to develop the rankings for granting subsidies leads in principle to a very high probability of either financing projects that do not need subsidies or granting excessive awards. As a consequence, the ability of the selection scheme to create new investment is highly suspect. The industrial policy orientation appears uncertain and vague. Technically the scheme is far from perfect. The characteristics of the results of the selections so far completed offer empirical support to the analytical considerations of the article.