Infrastructure and Performance of the Italian Economic System

This paper aims to analyze the consequences for the Italian economy of the recently started process of modernization and extension of the country's infrastructure. The planned measures are expected to increase the competitiveness of Italian businesses, and to improve the quality of life. In the short term, investments in infrastructure will increase the construction sector's production and, consequently, activate income and employment multipliers. The Italian economic system being highly differentiated from a territorial viewpoint, the impact of new investments on its economic system has been analyzed by means of a biregional model that accounts for the peculiar productive structure of the 20 Italian regions.