“Productivity has stagnated since the 1990s chiefly because Italian firms are on average too small and too slow to grow. The few firms that employ more than 50 workers are comparatively productive, the myriad smaller ones far less so. One explanation is that domestic competitive pressures are relatively low, especially in services. Stronger competition would help innovative Italian firms and push weaker ones out of the market. Another explanation is the weakness of the rule of law, which hinders innovation, the growth of firms and efficient allocation of resources. Tax evasion, for example, can save underperforming firms from failure.”
Fonte: Financial Times
Autore: Andrea Lorenzo Capussela
Link: Italy’s amnesties damage the economy as well as the rule of law
