The Sources of Local Growth: Evidence from Italy
The aim of this paper it to identify the main determinants of growth for local areas belonging to the same country. We examine the impact of a number of social, struc¬tural, and political variables on the economic performance of the Italian provinces during the period 1971-1991. Many of these variables appear for the first time in the Barro-regression literature. We analyze growth not only in terms of income, but also in terms of employment and population. First, we find that local growth is strongly affected by the diffusion of specialized industrial districts made up of small and medium-sized firms. Second, we find weak evidence of the importance of social capi¬tal for growth, whereas variables indicating political sub-cultures and social cohesion are strongly related with economic performance. Lastly, we show that crime and labor conflicts have a clear negative impact on employment.
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Volume (Year): 59 (2000)
Issue (Month): 1 (April)
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