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Banking and Finance in the Italian Mezzogiorno: Issues and Problems

  • Marcello Messori
Part of the Economics of Science, Technology and Innovation book series (ESTI, volume 9)

Abstract

In this paper I analyze the specificity of the workings of capital markets, and in particular the behavior of the banking system in the Italian Mezzogiorno. As is well known, the South is the least developed part of the Italian economy: it represents a marginal area of an industrialized economic system, and can therefore be considered an industrialized area in itself. I maintain that, beyond some negative institutional features (mainly, the heavy economic role played by illegal organizations such as the Mafia),the Mezzogiorno’s mix of marginality and industrialization represents an extreme case of the growth paths followed -or to be followed- by other areas in the European pheripheries. On the other hand, the development of finance and banking institutions and their (active or passive) role are crucial in the development of the economic systems75. Hence, my analysis aims to highlight the financial constraints which hinder the economic evolution of Southern Italy and, possibly, of other European marginal areas. To this end, I stress some of the more general and theoretical aspects.

Keywords

Interest Rate Banking System Credit Rationing Credit Market Default Risk 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media Dordrecht 1996

Authors and Affiliations

  • Marcello Messori
    • 1
  1. 1.University of CassinoItaly

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