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The effects of unification: markets, policy, and cyclical convergence in Italy, 1861–1913

Author

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  • Carlo Ciccarelli

    () (Facoltà di Economia, Università di Roma “Tor Vergata”, Rome, Italy)

  • Stefano Fenoaltea

    (Facoltà di Economia, Università di Roma “Tor Vergata”, Rome, Italy)

  • Tommaso Proietti

    (Facoltà di Economia, Università di Roma “Tor Vergata”, Rome, Italy)

Abstract

This paper uses time-series evidence on construction movements to examine the convergence of regional business cycles in the decades that followed Italy’s unification. The aggregate series point to cyclical convergence, but a sector-level analysis traces this result to the decline in differentiated “regional-policy” shocks. The regional market cycles diverged, as regions specialized in different sectors of production; market-cycle convergence is observed only within the “industrial triangle,” the regions of which also developed different specializations. This suggests that the balance between growing interdependence and growing differentiation is not general, as the current literature presumes, but specialization-specific.

Suggested Citation

  • Carlo Ciccarelli & Stefano Fenoaltea & Tommaso Proietti, 2010. "The effects of unification: markets, policy, and cyclical convergence in Italy, 1861–1913," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 4(3), pages 269-292, October.
  • Handle: RePEc:afc:cliome:v:4:y:2010:i:3:p:269-292
    DOI: 10.1007/s11698-009-0046-z
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    Cited by:

    1. Emanuele Felice, 2012. "Regional convergence in Italy, 1891–2001: testing human and social capital," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(3), pages 267-306, October.
    2. Di Liberto, Adriana & Sideri, Marco, 2015. "Past dominations, current institutions and the Italian regional economic performance," European Journal of Political Economy, Elsevier, vol. 38(C), pages 12-41.
    3. Makiko Hino & Mototsugu Fukushige, 2014. "Catching up and falling behind in technological progress: the experience of the textile and chemical industries in Italy between 1904 and 1937," Discussion Papers in Economics and Business 14-14, Osaka University, Graduate School of Economics.
    4. Emanuele Felice, 2014. "GDP and convergence in modern times," Working Papers 01-14, Association Française de Cliométrie (AFC).
    5. Emanuele Felice, 2011. "The Rule and the Exception: Italy’s Regional Imbalances (1891-2001) through a Shift-Share Analysis," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
    6. Giovanni Federico & Antonio Tena-Junguito, 2014. "The ripples of the industrial revolution: exports, economic growth, and regional integration in Italy in the early nineteenth century," European Review of Economic History, Oxford University Press, vol. 18(3), pages 349-369.
    7. Emanuele Felice, 2019. "Rethinking the take-off: the role of services in the new economic history of Italy (1861–1951)," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 13(3), pages 405-442, September.
    8. Carlo Ciccarelli & Anna Missiaia, 2018. "The fall and rise of business cycle co-movements in Imperial Austria’s regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(1), pages 171-193, January.

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    More about this item

    Keywords

    Unification; Regions; Specialization; Business cycles;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F15 - International Economics - - Trade - - - Economic Integration
    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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