Geography, market potential and industrialization in Italy 1871–2001

Abstract

This paper deals with industrialization in Italy between 1871 and 2001, and is based on data on the labour force per province (NUTS 3) from population censuses. Particular attention is devoted to long-term trends and North-South disparities. After the analysis of the geographic spread of industry and its changes, we test the role of access to markets on the distribution of the labour force in manufacturing. The results show that access to markets played a main role in Italian industrialization and in the evolution of inequalities among Northern and Southern regions.JEL classification: N94, R18

Regional inequality: An analysis under the core–peripheral model

“…In the first period from 1871 to 1911, there was a slight divergence. From 1891, this phenomenon accelerated in times of globalization until 1911 (Daniele et al, , p. 644; Felice, , p. 933; Felice, , p. 269; Felice, , p. 44). This was due to regional wage differences between the regions.…”

“…Before 1971, the policy was characterized by investment support and regional employment contracts. From 1971, however, the convergence process came to a standstill (Daniele et al, ; Felice, ). Current data between 2000 and 2016 continues to show a convergence of 76% of the gross domestic product (GDP) of Italy (Eurostat, ).…”

“…This may lead to the market entry and exit of individual companies (Daniele et. al., , p. 648; Krugman, , p. 14; Krugman & Venables, , p. 57; Krugman & Venables, , p. 857; Marshall, , p. 271; Venables, ). The labor factor is partially immobile. Industrial workers can move between sectors and regions.…”

“…For this reason, agricultural production is immobile and local (Daniele et. al., , p. 651). Finally, consumers prefer a variety of products. By considering Dixit–Stiglitz model, various product variants in the industrial sector are included (Dixit & Stiglitz, , p. 297).…”

Külkereskedelem, regionális különbségek és a képzettek vándorlása

“…az utóbbi paraméter értékéből következik, hogy a vállalatok határköltség feletti haszonkulcsa 4/3 = 1,33. a kereskedési költségek mértékének megválasztásánál elsősorban azt igyekszünk érvényesíteni, hogy az országon belüli kereskedés könnyebb, mint az országhatárokon átnyúló (border effect). a beállított mértékek nem túl magasak: Anderson-Wincoop [2004] átlagosan 170 százalékra becsüli a költségek teljes nagyságát.…”