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Market versus endowment: explaining early industrial location in Italy (1871–1911)

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  • Anna Missiaia

    () (Lund University)

Abstract

Abstract This article aims to explain the location of the manufacturing industries in Italy in the period 1871–1911. The analytical framework takes into account of two competing theories on the determinants of the location of economic activity: the Heckscher–Ohlin (H–O) theory on factor endowments and the new economic geography (NEG) theory on access to markets. The methodology used here is based on Midelfart-Knarvik et al. (The location of European industry, European Economy Economic Papers 142. European Commission, 2000) and has seen several historical applications. The location of industries is explained through interactions between characteristics of the regions and characteristics of the sectors, of both H–O type and NEG type. The main finding is that endowments, and in particular energy and human capital, were the determinants of the geography of the first Italian industrialization. Market access, at this point of industrialization, mattered only in its domestic formulation and only through economies of scale.

Suggested Citation

  • Anna Missiaia, 2019. "Market versus endowment: explaining early industrial location in Italy (1871–1911)," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 13(1), pages 127-161, January.
  • Handle: RePEc:spr:cliomt:v:13:y:2019:i:1:d:10.1007_s11698-018-0172-6
    DOI: 10.1007/s11698-018-0172-6
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    References listed on IDEAS

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    Cited by:

    1. Felice, Emanuele, 2014. "Il Mezzogiorno fra storia e pubblicistica. Una replica a Daniele e Malanima
      [Southern Italy between history and journalistic books. A reply to Daniele and Malanima]
      ," MPRA Paper 55830, University Library of Munich, Germany.
    2. Emanuele Felice, 2015. "La stima e l’interpretazione dei divari regionali nel lungo periodo: i risultati principali e alcune tracce di ricerca," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(3), pages 91-120.
    3. Guerriero, Carmine & de Oliveira, Guilherme, 2014. "Extractive States: The Case of the Italian Unification," MPRA Paper 70916, University Library of Munich, Germany, revised 13 Apr 2016.
    4. Emanuele Felice, 2013. "Regional income inequality in Italy in the long run (1871–2001). Patterns and determinants," UHE Working papers 2013_08, Universitat Autònoma de Barcelona, Departament d'Economia i Història Econòmica, Unitat d'Història Econòmica.

    More about this item

    Keywords

    Economic geography; Economic history of Italy; Industrial location;

    JEL classification:

    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N73 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Europe: Pre-1913
    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • 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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