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Agricultural Policy and Long-Run Development: Evidence from Mussolini's Battle for Grain

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  • Mario F Carillo

Abstract

This article explores the long-run effect of agricultural policies on industrialisation and economic development. I analyse the differential effect of the Battle for Grain, implemented by the Italian Fascist regime to achieve self-sufficiency in wheat, on the development path across areas of Italy. Employing cross-sectional variation in land suitability for advanced wheat production technologies, along with time variation in their diffusion, I find that the policy had unintended positive effects on industrialisation and economic prosperity, which have persisted until today. Furthermore, I find that the complementarity between human capital and agricultural technology was a critical mechanism.

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  • Mario F Carillo, 2021. "Agricultural Policy and Long-Run Development: Evidence from Mussolini's Battle for Grain," The Economic Journal, Royal Economic Society, vol. 131(634), pages 566-597.
    • Handle: RePEc:oup:econjl:v:131:y:2021:i:634:p:566-597.
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    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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