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Neoclassical versus Technological Convergence: Some Evidence from the Recent Experience of the Italian Regions

  • Carluccio Bianchi


    (Dipartimento di Economia Politica e Metodi Quantitativi, Universita' di Pavia)

  • Mario Menegatti

    (Dipartimento di Economia, Universita' di Parma)

This paper tests for the existence of neoclassical and/or technological catching up across Italian regions in the last three decades. The test is performed making use of a model based on the decomposition of output growth, similar to that proposed by Dowrick - Rogers (2002). The results imply that while the neoclassical convergence mechanism has occurred, the technological mechanism has failed. A possible explanation of the evidence found is that the regions initially endowed with better technology were subsequently characterised by a greater number of innovations and a higher share of GPD spent on research expenditure, which enabled them to maintain a substantial technological gap. These results suggest the policy conclusion that complete convergence across Italian regions requires the promotion of technological transfers and an increase in R&D expenditure in the least developed regions.

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Article provided by Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore in its journal Rivista Internazionale di Scienze Sociali.

Volume (Year): 116 (2008)
Issue (Month): 3 ()
Pages: 271-287

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Handle: RePEc:vep:journl:y:2008:v:116:i:3:p:271-287
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