The research, carried out in collaboration with Il Sole 24 ORE and Fondazione CERM for the National Interest Project, provides a concise overview of local economic dynamism in Italy.
A composite indicator was used taking into account three key aspects for gauging differences in the economic dynamism and wealth-generation capacity of local areas. The factors considered were:
a) demography, with reference to the impact of the working-age component of the population;
b) employment, using rates of employment; and
c) productivity, by measuring value added per employee.
The combination of these three indicators into a composite weighted structural dependency ratio enables a concise yet sound and meaningful picture of the growth potential of local areas in Italy to be obtained.
Relatively low structural dependency ratios indicate an advanced ability to virtuously combine demographic, employment-related and wealth-generation capacity factors.
In forthcoming updates to the Showcase of Italian Local Excellence, a series of factors which explain the different levels of performance revealed will be presented and analyzed.