Cultural Heritage Spending and Regional Economic Spillovers

The event investigates the economic implications of public investment in cultural heritage across Italian regions from 2008 to 2022. Cultural heritage, as a unique non-fungible asset, holds intrinsic cultural, historical, and emotional values and instrumental economic potential through stimulating tourism, employment, and local economic activities. The study employs a detailed panel dataset derived from Italian public procurement contracts and utilizes advanced spatial econometric methods to analyze the impacts of spending intensity, procurement efficiency, and regional leakage on local economic performance, specifically within tourism-related sectors. Key findings reveal that while overall cultural heritage spending positively influences regional economic performance, notably within the tourism industry, specific types of investments yield varied outcomes. Investments in physical restoration and construction ("works tenders") demonstrated a short-term negative economic impact, likely due to temporary disruptions such as construction-related hindrances to tourism. Conversely, investments focused on consulting and management services ("services tenders") showed beneficial effects. Additionally, regional economic benefits significantly decline when procurement contracts are awarded to non-local firms, highlighting economic leakage as a critical determinant of local value retention. Spatial analysis further indicates substantial regional spillovers, wherein the economic outcomes of cultural heritage spending in one region influence neighboring areas, creating competitive dynamics that can either enhance or detract from local economic performance. Consequently, the paper underscores the importance of policies that encourage local procurement and improved project management efficiency, advocating for cooperative rather than competitive regional strategies. The findings contribute valuable insights for policymakers aiming to leverage cultural heritage investments effectively to foster sustainable regional economic development.