Fiscal policy and Italy’s economic development

Abstract

The article links up with the more recent literature in the field of fiscal theory; the relations between fiscal policy and the size of national income. In the framework of this theoretical trend, the author considers the part that should be played by an active fiscal policy for promoting the development of Italian economy, and more especially the recovery of the depressed and backward areas of the South. In this connection, he stresses a structural feature of the Italian economy, where we find side by side highly industrialised regions, whose problems are similar to those of mature economies, and extensive backward and depressed areas. The author observes that while this situation does not allow the application of policies elaborated for mature economies, neither does it present the difficulties met with in countries in the early stages of industrialisation, as the different aspects of Italian economy might find profitable opportunities for cooperation and integration in a nation-wide programme of economic development.

JEL: E62, O23