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The Role of Manufacturing in the Economic Growth from a Kaldorian Perspctive using the Network Analysis: The Case of Italy

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  • Michele Lo Re
  • Linda Meleo
  • Cesare Pozzi

Abstract

Based on Kaldor's insights and by following studies developed by Verdoorn regarding the positive link between labor factor and production, this paper aims to analyze the role played by the manufacturing industry in the national economy, and map relationships with others areas by means of an analysis tool, used also in many different disciplines from economics, called network analysis (na). In particular, this paper supports, through empirical evidence, Kaldor's theoretical contributions on «applied economics growth», and explains how manufacturing industry appears to be strategic in the role of headquarters economy of the different network nodes production of which it is made up the Italian economy. This paper is organized in four main sections. Firstly, it has been briefly showed Kaldor's law and his attempts at translation policies. Secondly, it has been explained the network analysis methodology and its main indicators using for the Italy case. Thirdly, it has been illustrated some results and main implications. Finally, it has been carried out indications and policy recommendations.

Suggested Citation

  • Michele Lo Re & Linda Meleo & Cesare Pozzi, 2015. "The Role of Manufacturing in the Economic Growth from a Kaldorian Perspctive using the Network Analysis: The Case of Italy," L'industria, Società editrice il Mulino, issue 3, pages 473-490.
    • Handle: RePEc:mul:j0hje1:doi:10.1430/81872:y:2015:i:3:p:473-490
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