Can Geographical Indications (GIs) promote local economic development in rural areas? This paper explores the impact of GIs that identify and endorse agri-food products which are strictly embedded within the territory from which they originate. Examining Italian wine protected by GIs through an innovative dataset and by means of propensity score matching and difference-in-differences models make it possible to compare the local economic development trajectories of rural municipalities afforded GIs with the correspondent dynamics of a counterfactual group of similar municipalities without GI status since 1951. Rural municipalities with GIs experience population growth and economic reorganization towards non-farming sectors, which frequently involve higher value-added activities.

Once the EU has perceived the strategic importance of local peculiarities to support rural development and high-quality productions, it has emphasized the need for more place-sensitive agri-food policies. The importance of socio-economic, historical and cultural factors as transfers of intangible value-added is particularly evident in the agri-food sector. Place-blind and sectorial-oriented approaches have indeed not succeeded in dealing with the territorial heterogeneity of agri-food systems. By delving into the longstanding debate on the conceptualizations of territory and focusing on the territories of origin of the most economically performant Italian Protected Designation of Origins (PDOs), this paper empirically investigates what are the contextual conditions that have mainly contributed in the economic success of local productions. Drawing on an original geo-referenced database, the analysis is conducted on a panel of Italian municipalities and exploits non-linear dynamic panel models. Findings point out the heterogeneity of affecting territorial factors. Imbalances come from both socio-economic conditions (food PDOs) and socio-cultural knowledge (wine PDOs). This paper informs the evidence-based debate on the relevance of territorially-sensitive interventions for the future of EU agri-food and rural development policies. In the case of GIs, it should consider being more place-sensitive as well as more integrated with other agricultural and regional policies to meet the EU’s socio-economic objectives.

This paper investigates the influence of accreditations on tourism demand, namely, World Heritage List (WHL) designations and Geographical Indications (GIs). The analysis examines Italian data at the NUTS3 level spanning from 1999 to 2019. Contribution of the study is two-fold. Firstly, by utilizing a Difference-in-Differences model in conjunction with Propensity Score Matching (PSM-DiD), the study evaluates the impact of jointly recognizing both accreditations as a binary treatment (yes/no). Secondly, by employing Generalised Propensity Score Matching (GPSM) for continuous treatment, the study gauges how the impact of the two accreditations is contingent on the number of recognitions (consistency). These impact assessments concern both domestic and international tourists. Conclusions highlight the positive effects, encompassing tourism arrivals, overnight stays, and tourist expenditures, associated with both the combined recognition (PSM-DiD) and the consistency of accreditation (GPSM). These findings support the implementation of place-based policies promoting diverse local assets, notably cultural heritage and agri-food excellence.

Wine is gaining increasing importance in the modern tourism industry. The aim of this paper is to unpack the relations between engaging agritourism practices and wine farming specialisation in Italy, with special emphasis on socio-economic sustainability performances. The analysis is conducted at the farm level using Italian Farm Accountancy Data Network (FADN) data over the 2017–2021 period and exploiting a Propensity Score Matching approach. Results show that wine farms are more likely to pursue agritourism activities than other farms, with high-quality wine producers offering a more diverse tourism option. Wine tourism affects socio-economic sustainability, but with differences noted between high-quality and conventional producers. Implications arise for policy makers and practitioners building local development strategies and finding inroads to fostering sustainable tourism.