FINANCIAL STABILITY AND LOCAL ECONOMIC DEVELOPMENT: THE EXPERIENCE OF ITALIAN LABOUR MARKET AREAS

Abstract

Abstract: Regulators should ensure the smooth functioning of the system and
promote regional development. Making the health of fnancial institutions is therefore a
prerequisite for a sustainable economic development. This paper contributes to the
literature on the relationship between the fnancial stability and growth within the area
of one country. This implies that institutional, legal, and cultural factors are more
adequately controlled for and fnancial markets are more accurately bounded.