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The Sources of Local Growth: Evidence from Italy

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Author Info

  • Mario Forni

    ()
    (University of Modena)

  • Sergio Paba

    ()
    (University of Modena)

Abstract

The aim of this paper it to identify the main determinants of growth for local areas belonging to the same country. We examine the impact of a number of social, struc¬tural, and political variables on the economic performance of the Italian provinces during the period 1971-1991. Many of these variables appear for the first time in the Barro-regression literature. We analyze growth not only in terms of income, but also in terms of employment and population. First, we find that local growth is strongly affected by the diffusion of specialized industrial districts made up of small and medium-sized firms. Second, we find weak evidence of the importance of social capi¬tal for growth, whereas variables indicating political sub-cultures and social cohesion are strongly related with economic performance. Lastly, we show that crime and labor conflicts have a clear negative impact on employment.

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Bibliographic Info

Article provided by GDE (Giornale degli Economisti e Annali di Economia), Bocconi University in its journal Giornale degli Economisti e Annali di Economia.

Volume (Year): 59 (2000)
Issue (Month): 1 (April)
Pages: 1-49

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Handle: RePEc:gde:journl:gde_v59_n1_p1-49

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Related research

Keywords: local growth; industrial districts; social capital; political sub-cultures;

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Cited by:
  1. Giuseppe De Arcangelis & Giovanni Ferri & Pier Carlo Padoan, 2002. "Firms’ Clustering and SEE Export Performance: Lessons from the Italian Experience," wiiw Balkan Observatory Working Papers 021, The Vienna Institute for International Economic Studies, wiiw.
  2. Fiaschi Davide & Gianmoena Lisa & Parenti Angela, 2011. "The Dynamics of Labour Productivity Across Italian Provinces: Convergence and Polarization," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 209-240.
  3. Rosetta Lombardo & Marianna Falcone, 2011. "Crime And Economic Performance. A Cluster Analysis Of Panel Data On Italy'S Nuts 3 Regions," Working Papers 201112, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  4. R. Paci & S. Saddi, 2002. "Capitale pubblico e produttività nelle regioni italiane," Working Paper CRENoS 200201, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  5. De Siano, Rita & D'Uva, Marcella, 2007. "A new approach for β-convergence estimation in Italy," MPRA Paper 5643, University Library of Munich, Germany.
  6. Fiorillo, Damiano, 2005. "Le determinanti del capitale sociale in Italia, 1993-2000: una analisi esplorativa," MPRA Paper 796, University Library of Munich, Germany.
  7. A. Lasagni, 2009. "Agglomeration economies: new evidence on IT employment growth in Italy," Economics Department Working Papers 2009-EP08, Department of Economics, Parma University (Italy).
  8. Forni, Mario & Paba, Sergio, 2001. "Knowledge Spillovers and the Growth of Local Industries," CEPR Discussion Papers 2934, C.E.P.R. Discussion Papers.
  9. R. Paci & S. Usai, 2001. "Externalities and local economic growth in manufacturing industries," Working Paper CRENoS 200113, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  10. Giovanni Peri & Dieter Urban, 2002. "The Veblen-Gerschenkron Effect of FDI in Mezzogiorno and East Germany," Development Working Papers 164, Centro Studi Luca d\'Agliano, University of Milano.

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