Title: The management of the financial collapse of local bodies and its economic-territorial effects: the case of the Municipality of Taranto

Authors: Mario Turco

Addresses: Department of Science of Economics, Faculty of Economics 'A. de Viti de Marco', University of Salento, Via per Monteroni – Complesso Ecotekne, 73100 Lecce, Italy

Abstract: The present work aims to offer a contribute for the evaluation of the opportunity to adopt strategies based on state support or, alternatively, on the managerial autonomy of local bodies in financial trouble. The research, after analysing the main guidelines at European level, presents the results of an empirical investigation on the economic effects produced on the local economy by the financial default of the Municipality of Taranto. The choice of the Municipality of Taranto is due both to the significant magnitude of the ascertained debt, which was one of the highest in the history of Italy, and to the considerable economic effects caused by the recovery procedure. Specifically, with reference to the companies admitted to the passive mass, have been firstly determined the economic losses they suffered and, secondly, has been analysed the survival status of the companies involved in the insolvency procedure and located in the local area of reference, as well as the related strategies they adopted.

Keywords: local bodies; financial default; local effects; business strategies.

DOI: 10.1504/IJPSPM.2017.084677

International Journal of Public Sector Performance Management, 2017 Vol.3 No.2, pp.191 - 207

Received: 02 Apr 2016
Accepted: 21 Jan 2017
Published online: 20 Jun 2017 *

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