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Internal Geography and External Trade: regional disparities in Italy, 1861-2011

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  • Brian A'Hearn
  • Tony Venables

Abstract

This paper explores the interactions between external trade and regional disparities in the Italian economy since unification.� It argues that the advantage of the North was initially based on natural advantage (in particular the endowment of water, intensive in silk production).� From 1880 onwards the share of exports in GDP stagnated and then declined; domestic market access therefore became a key determinant of industrial location, inducing fast growing new sectors (especially engineering) to locate in regions with a large domestic market, i.e. in the North.� From 1945 onwards trade growth and European integration meant that foreign market access was the decisive factor; the North had the advantage of proximity to these markets.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 578.

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Date of creation: 01 Nov 2011
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Handle: RePEc:oxf:wpaper:578

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Keywords: Industrialisation; Market integration; New economic geography; Geographic concentration; Italian regions;

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