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The Location of the Italian Manufacturing Industry 1871-1911: A Sectoral Analysis

Author

Listed:
  • Roberto Basile

    (Department of Economics, Second University of Naples - University of Naples Federico II = Università degli studi di Napoli Federico II)

  • Carlo Ciccarelli

    (Università degli Studi di Roma Tor Vergata [Roma] = University of Rome Tor Vergata)

Abstract

Using a new dataset on value added at 1911 prices at province level for 12 industries, we analyze the spatial location patterns of manufacturing activity in Italy during the period 1871-1911. We test the effect of domestic market potential and factor endowment, focusing on water supply. The results show that, as transportation costs decreased and barriers to domestic trade were eliminated, Italian provinces became more and more specialized, and manufacturing activity increasingly concentrated in a few provinces, mostly belonging to the North-West part of the country. The estimation results corroborate the hypothesis that both comparative advantages (water endowment effect) and market potential (home-market effect) have been responsible of this pro cess of spatial concentration. The location of some traditional industries characterized by a low capital-lab or ratio (such as clothing and wo o d) was mainly driven by water endowment, while the lo cation of fast growing new sectors characterized by a medium/high capital lab or ratio (such as engineering, metal-making, chemicals, textile and paper) was mainly driven by the domestic market potential.

Suggested Citation

  • Roberto Basile & Carlo Ciccarelli, 2015. "The Location of the Italian Manufacturing Industry 1871-1911: A Sectoral Analysis," Post-Print hal-01430824, HAL.
    • Handle: RePEc:hal:journl:hal-01430824
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    Citations

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    Cited by:

    1. Carlo Ciccarelli & Matteo Gomellini & Paolo Sestito, 2019. "Demography and Productivity in the Italian Manufacturing Industry: Yesterday and Today," CEIS Research Paper 457, Tor Vergata University, CEIS, revised 16 May 2019.
    2. Carlo Ciccarelli & Stefano Fachin, 2017. "Regional growth with spatial dependence: A case study on early Italian industrialization," Papers in Regional Science, Wiley Blackwell, vol. 96(4), pages 675-695, November.
    3. Monturano, Gianluca & Resce, Giuliano & Ventura, Marco, 2022. "Place-Based Policies and the location of economic activity: evidence from the Italian Strategy for Inner areas," Economics & Statistics Discussion Papers esdp22087, University of Molise, Department of Economics.
    4. Maria Carmela Schisani & Luigi Balletta & Giancarlo Ragozini, 2021. "Crowding out the change: business networks and persisting economic elites in the South of Italy over Unification (1840–1880)," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 15(1), pages 89-131, January.
    5. Anna Missiaia, 2019. "Market versus endowment: explaining early industrial location in Italy (1871–1911)," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 13(1), pages 127-161, January.
    6. Francisco J. Beltrán Tapia & Gabriele Cappelli, 2024. "Missing girls in Liberal Italy, 1861–1921," Economic History Review, Economic History Society, vol. 77(1), pages 185-211, February.
    7. Gabriele Cappelli & Michelangelo Vasta, 2021. "A “Silent Revolution”: school reforms and Italy’s educational gender gap in the Liberal Age (1861–1921)," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 15(1), pages 203-229, January.
    8. Roberto Antonietti & Chiara Burlina, 2019. "From variety to economic complexity: empirical evidence from Italian regions," Papers in Evolutionary Economic Geography (PEEG) 1930, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2019.
    9. Ciccarelli, Carlo & Magazzino, Cosimo & Marcucci, Edoardo, 2021. "Early development of Italian railways and industrial growth: A regional analysis," Research in Transportation Economics, Elsevier, vol. 88(C).
    10. Monica Bozzano & Gabriele Cappelli, 2019. "The legacy of history or the outcome of reforms? Primary education and literacy in Liberal Italy (1871-1911)," Department of Economics University of Siena 801, Department of Economics, University of Siena.
    11. Nicola Pontarollo & Roberto Ricciuti, 2020. "Railways and manufacturing productivity in Italy after unification," Journal of Regional Science, Wiley Blackwell, vol. 60(4), pages 775-800, September.
    12. Rueda, Valeria & A'Hearn, Brian, 2020. "Internal Borders and Population Geography in the Unification of Italy," CEPR Discussion Papers 14604, C.E.P.R. Discussion Papers.
    13. Maria Carmela Schisani & Luigi Balletta & Giancarlo Ragozini, 2021. "Crowding out the change: business networks and persisting economic elites in the South of Italy over Unification (1840–1880)," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 15(1), pages 89-131, January.

    More about this item

    Keywords

    Market potential; Factor endowment; Concentration; Italy;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913

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