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The determinants of Italy's regional imbalances over the long run: exploring the contributions of human and social capital

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  • Emanuele Felice
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    Abstract

    The article aims to present and discuss estimates of levels of human and social capital in Italy's regions over the long term, i.e. roughly from the second half of the nineteenth century up to the present day.� The results are linked to newly available evidence for regional value added in order to begin to form an explanatory hypothesis of long-term regional inequality in Italy.� More particularly, convergence in value added per capita across Italy's regions is tested (through both cross-section and dynamic panel regressions) in light of the neoclassical exogenous growth approach, which incorporates human capital and social capital as conditioning variables into a long-term production function.� On the whole, the results confirm the importance of conditioning variables, i.e. of regional diffrences in human capital and social capital, but also suggest that their impact significantly changed over the twentieth century, thus supporting the view that, in different periods, conditioning variables are determined by technological regimes.

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    Bibliographic Info

    Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number Number 88.

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    Date of creation: 01 Mar 2011
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    Handle: RePEc:oxf:wpaper:number-88

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    Related research

    Keywords: Regional history; human capital; social capital; convergence;

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
    2. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
    3. John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
    4. Carlo Ciccarelli & Stefano Fenoaltea, 2010. "Through the Magnifying Glass: Provincial Aspects of Industrial Growth in Post-Unification Italy," Quaderni di storia economica (Economic History Working Papers) 4, Bank of Italy, Economic Research and International Relations Area.
    5. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    6. Gernot Doppelhofer & Ronald I. Miller & Xavier Sala-i-Martin, 2000. "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (Bace) Approach," OECD Economics Department Working Papers 266, OECD Publishing.
    7. Easterlin, Richard A., 1981. "Why Isn't the Whole World Developed?," The Journal of Economic History, Cambridge University Press, vol. 41(01), pages 1-17, March.
    8. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc.
    9. Fenoaltea, Stefano, 2003. "Peeking Backward: Regional Aspects of Industrial Growth in Post-Unification Italy," The Journal of Economic History, Cambridge University Press, vol. 63(04), pages 1059-1102, December.
    10. Carreras Albert & Felice Emanuele, 2010. "L'industria italiana dal 1911 al 1938: ricostruzione della serie del valore aggiunto e interpretazioni," Rivista di storia economica, Società editrice il Mulino, issue 3, pages 285-334.
    11. Ram, Rati, 1991. "Education and the Convergence Hypothesis: Ad¬ditional Cross-Country Evidence," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 44(2-3), pages 244-253.
    12. Fabio Sabatini, 2005. "Measuring Social Capital in Italy. An Exploratory Analysis," Development and Comp Systems 0504003, EconWPA.
    13. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
    14. Felice Emanuele, 2005. "Il reddito delle regioni italiane nel 1938 e nel 1951. Una stima basata sul costo del lavoro," Rivista di storia economica, Società editrice il Mulino, issue 1, pages 3-30.
    15. Valeria Costantini & Salvatore Monni, 2005. "Sustainable Human Development for European Countries," Journal of Human Development and Capabilities, Taylor and Francis Journals, vol. 6(3), pages 329-351.
    16. Emanuele Felice, 2011. "Regional value added in Italy, 1891–2001, and the foundation of a long‐term picture," Economic History Review, Economic History Society, vol. 64(3), pages 929-950, 08.
    17. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April.
    18. Ram, Rati, 1990. "Educational Expansion and Schooling Inequality: International Evidence and Some Implications," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 266-74, May.
    19. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Cited by:
    1. Eric Schneider, 2012. "Prices and Production: Agricultural Supply Response in Fourteenth-Century England," Economics Series Working Papers Number 97, University of Oxford, Department of Economics.

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