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Regional Growth with Spatial Dependence: a Case Study on Early Italian Industrialization

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  • Carlo Ciccarelli

    () (Department of Economics and Finance, University of Rome Tor Vergata)

  • Stefano Fachin

    () (Department of Statistics, Sapienza University of Rome)

Abstract

The paper estimates a conditional ß-convergence model of labor productivity growth in Italy’s manufacturing industry during 1871-1911, accounting for spatial dependence. The empirical evidence is based on a recent set of data at provincial (NUTS 3) level on manufacturing value added at 1911 prices, and a new set of data on human and social capital, political participation, and infrastructures. By focusing on a country and a time when the agglomeration forces and spillover effects advocated by the new economic geography were only starting to operate, we can investigate a particularly interesting case study. Our results suggest that human capital, a cooperative culture, and initial productivity in neighboring provinces can explain much of the geographical variability of productivity growth in manufacturing in nineteenth-century Italy.

Suggested Citation

  • Carlo Ciccarelli & Stefano Fachin, 2016. "Regional Growth with Spatial Dependence: a Case Study on Early Italian Industrialization," Quaderni di storia economica (Economic History Working Papers) 35, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:workqs:qse_35
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    References listed on IDEAS

    as
    1. Gianfranco Piras & Paolo Postiglione & Patricio Aroca, 2012. "Specialization, R&D and productivity growth: evidence from EU regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(1), pages 35-51, August.
    2. Carlo Ciccarelli, 2015. "Industry, Sectors, Regions: The State of Play on Italy’s Historical Statistics," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(3), pages 73-89.
    3. Guido de Blasio & Giorgio Nuzzo, 2010. "Historical Traditions Of Civicness And Local Economic Development," Journal of Regional Science, Wiley Blackwell, vol. 50(4), pages 833-857.
    4. Di Liberto, Adriana, 2008. "Education and Italian regional development," Economics of Education Review, Elsevier, vol. 27(1), pages 94-107, February.
    5. Sandy Dall'erba & Julie Le Gallo, 2008. "Regional convergence and the impact of European structural funds over 1989-1999: A spatial econometric analysis," Papers in Regional Science, Wiley Blackwell, pages 219-244.
    6. Carlo Ciccarelli & Tommaso Proietti, 2013. "Patterns of industrial specialisation in post-Unification Italy," Scandinavian Economic History Review, Taylor & Francis Journals, vol. 61(3), pages 259-286, November.
    7. Andrea Caragliu & Peter Nijkamp, 2008. "The Impact of Regional Absorptive Capacity on Spatial Knowledge Spillovers," Tinbergen Institute Discussion Papers 08-119/3, Tinbergen Institute.
    8. Nicola Gennaioli & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2013. "Human Capital and Regional Development," The Quarterly Journal of Economics, Oxford University Press, vol. 128(1), pages 105-164.
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    11. Ciccarelli Carlo & Fenoaltea Stefano, 2008. "Construction in Italy's Regions, 1861-1913," Rivista di storia economica, Società editrice il Mulino, issue 3, pages 303-340.
    12. Dani Rodrik, 2011. "The future of economic convergence," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 13-52.
    13. Bronzini, Raffaello & Piselli, Paolo, 2009. "Determinants of long-run regional productivity with geographical spillovers: The role of R&D, human capital and public infrastructure," Regional Science and Urban Economics, Elsevier, vol. 39(2), pages 187-199, March.
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    16. Ciccarelli Carlo & Missiaia Anna, 2013. "The Industrial Labor Force of Italy's Provinces: Estimates from the Population Censuses, 1871-1911," Rivista di storia economica, Società editrice il Mulino, issue 2, pages 141-192.
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    Keywords

    ß-convergence; manufacturing; nineteenth-century; Italy; spatial dependence; labor productivity; human capital;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • N64 - Economic History - - Manufacturing and Construction - - - Europe: 1913-

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