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Institutions, Politics and the Corporate Economy

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  • Andrea Colli

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  • Alberto Rinaldi

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    Abstract

    Over the century and a half since its unification, Italy caught up with the most advanced economies. Such a result was achieved in the presence of an industrial structure which is in many respects unique in international perspective and characterized by a dominance of small firms and a marginal role of large firms. In the last twenty years, however, this pattern seems to have come to a halt. In this paper we explore the determinants of such a dynamic in the long run. The focus will be on the role played by institutions in forging an array of industrial policies in place over the last 150 years which determined the process of convergence and, more recently, of divergence in big business, and the outstanding, constant presence of a small business sector far beyond the average of the most advanced countries among which Italy is still considered to be.

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    Bibliographic Info

    Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 664.

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    Date of creation: Nov 2012
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    Handle: RePEc:usi:wpaper:664

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    Related research

    Keywords: Italy; big business; small firms; industrial policy; institutions;

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    References

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    1. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August.
    2. Alessandro Nuvolari & Michelangelo Vasta, 2012. "The Ghost in the Attic? The Italian National Innovation System in Historical Perspective, 1861-2011," Department of Economics University of Siena 665, Department of Economics, University of Siena.
    3. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    4. Emanuele Felice & Giovanni Vecchi, 2012. "Italy’s Modern Economic Growth, 1861-2011," Department of Economics University of Siena 663, Department of Economics, University of Siena.
    5. Giuseppe Longoni & Alberto Rinaldi, 2007. "Industrial Policy and Artisan Firms in Italy 1945-1971," Department of Economics 0566, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    6. Alberto Rinaldi, 2005. "The Emilian Model Revisited: Twenty Years After," Business History, Taylor & Francis Journals, vol. 47(2), pages 244-266.
    7. Brusco, Sebastiano, 1982. "The Emilian Model: Productive Decentralisation and Social Integration," Cambridge Journal of Economics, Oxford University Press, vol. 6(2), pages 167-84, June.
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