Cooperative banking and local sustainable development in Italy

This paper empirically investigates the relationship between cooperative banking and local sustainable development through a panel analysis of 103 Italian provinces over the period 2005–2021. Results show that cooperative credit banks exert a positive impact on local sustainable development, although this effect manifests heterogeneously across different dimensions that characterize it. The analysis also reveals a heterogeneity in CCBs’ impact across Italian macro-regions, suggesting that the sociocultural and institutional context might play a crucial role in shaping the relationship between cooperative banking and sustainable development. These findings provide valuable insights for developing effective policy strategies for boosting local sustainability. JEL classifications: G21, Q01, R11.