No. 952 - The impact of a large industrial plant closure on the local economy

by Francesco David
July 2025
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Large industrial plants bring benefits to local economies, but they can make territories overly dependent on the choices of individual firms, especially when they employ a significant share of the workforce. This paper analyses the socio-economic consequences of the closure of the FIAT plant in Termini Imerese (Sicily) in 2011, which accounted for 43 per cent of the local industrial workforce.

Following this closure, employment in Termini Imerese fell sharply compared with a counterfactual scenario of continued activity (1,500 people employed), with a decrease in the employment rate estimated at 3.9 percentage points at the end of 2021. Direct employment was the most affected, with limited spillover effects. This led to a decrease in population, a reduction in local income, and a decline in property values.

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  1. 23 July 2025
    No. 952 - The impact of a large industrial plant closure on the local economy
    PDF 4 MB

    (only in Italian)