Investment policy in rural areas as an instrument for the development of dualistic economies
Filippini, R.; Giovanelli, L.; Orlando, G.
Rivista di Economia Agraria 27(6): 61-86
1972
Document Number: 497374
In public investment policy, an approach more suited to a private enterprise operation is often adopted. This approach postulates that it is always advantageous to invest in areas where, because of the presence of external economies, the cumulative factors would permit maximum growth of income. However, in accordance with Keynesian macro-economic logic, a number of factors (the multiplier, intensity and availability of labour, elasticity of demand) should be considered which can render investment in areas without external economies more advantageous for the community as a whole, even if not immediately. The validity of this hypothesis is tested with a model in which such factors are referred to an Italian region.