No. 944 - The quality of the institutional context: how it varies across regions and over time

by Mario Cannella, Marco Mancinelli and Sauro Mocetti
June 2025
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The institutional context significantly has a significant impact on economic growth. However, its measurement is challenging due to the diversity of the domains involved and the difficulty in identifying suitable indicators. This paper assesses the quality of public action in the Italian regions and its evolution over time, based on about 50 key indicators - both objective and relating to the perceptions of businesses and citizens. A composite index is also derived from these indicators.

The quality of the institutional context is lower in southern Italy. This gap is evident across all domains, but it is particularly marked in the provision of local public services. Since the early 2010s, the quality of the institutional environment has gradually improved throughout the country, especially with regard to the functioning of civil justice and administrative efficiency. However, no significant convergence has occurred between the South and the Centre-North of Italy.

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