Decentralization and Its Impact on Economic Growth and Social Development in Friuli-Venezia Giulia and Puglia

Abstract

Italy constitutes a good example of the Regional State. Since 2001, after the amendment of the Italian constitution, the regions have obtained more legislative and administrative power and considerable number of legislative competences in many policy areas and over the EU affairs. However, Italy it is considered as a country where the regional economic and social disparities are still the widest in the European Union. Therefore, this paper aims to give deeper insight into the role of regional authorities and impact of the degree of decentralization on the reduction of economic and social disparities between the Italian regions, for the period 2000-2006. The scope of the research is limited to two Italian regions: Friuli-Venezia Giulia (special statute region/regione autonome a statuto speciale) and Puglia (ordinary statute region/regione a statutio ordinario). In order to explain the regional gap between these regions, this paper aims at providing an answer to the following research question: Is decentralization an influential factor in the reduction of the regional economic and social disparities between Friuli-Venezia Giulia and Puglia? Moreover, the research question will be addressed by testing a research hypothesis: Decentralization is an influential factor in strengthening economic growth and social development of the regions.

DOI: 10.5901/ajis.2016.v5n1p205