IDEAS home Printed from https://ideas.repec.org/p/bdi/workqs/qse_35.html

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.bancaditalia.it/pubblicazioni/quaderni-storia/2016-0035/index.html?com.dotmarketing.htmlpage.language=1
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Rodrik, Dani, 2011. "The Future of Convergence," Scholarly Articles 5131504, Harvard Kennedy School of Government.
    2. Giuseppe Arbia & Roberto Basile, 2005. "Spatial dependence and non-linearities in regional growth behaviour in Italy," Statistica, Department of Statistics, University of Bologna, vol. 65(2), pages 145-167.
    3. Long Gen Ying, 2003. "Understanding China’s recent growth experience: A spatial econometric perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 37(4), pages 613-628, December.
    4. 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.
    5. 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.
    6. John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
    7. Aschauer, David Alan, 1989. "Is public expenditure productive?," Journal of Monetary Economics, Elsevier, vol. 23(2), pages 177-200, March.
    8. Riccardo Crescenzi & Andrés Rodríguez-Pose, 2012. "Infrastructure and regional growth in the European Union," Papers in Regional Science, Wiley Blackwell, vol. 91(3), pages 487-513, August.
    9. Stephen Gibbons & Henry G. Overman, 2012. "Mostly Pointless Spatial Econometrics?," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 172-191, May.
    10. 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.
    11. Andrea Caragliu & Peter Nijkamp, 2008. "The Impact of Regional Absorptive Capacity on Spatial Knowledge Spillovers," Tinbergen Institute Discussion Papers 08-119/3, Tinbergen Institute.
    12. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    13. 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, October.
    14. Di Liberto, Adriana, 2008. "Education and Italian regional development," Economics of Education Review, Elsevier, vol. 27(1), pages 94-107, February.
    15. Robert C. Allen, 2003. "Progress and poverty in early modern Europe," Economic History Review, Economic History Society, vol. 56(3), pages 403-443, August.
    16. Dani Rodrik, 2011. "The future of economic convergence," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 13-52.
    17. 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, vol. 87(2), pages 219-244, June.
    18. Carlo Ciccarelli & Stefano Fenoaltea, 2013. "Through the magnifying glass: provincial aspects of industrial growth in post-Unification Italy," Economic History Review, Economic History Society, vol. 66(1), pages 57-85, February.
    19. James P. LeSage & R. Kelley Pace, 2014. "The Biggest Myth in Spatial Econometrics," Econometrics, MDPI, vol. 2(4), pages 1-33, December.
    20. Giuseppe Arbia & Roberto Basile & Gianfranco Piras, 2005. "Using Spatial Panel Data in Modelling Regional Growth and Convergence," ISAE Working Papers 55, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    21. Guido Tabellini, 2010. "Culture and Institutions: Economic Development in the Regions of Europe," Journal of the European Economic Association, MIT Press, vol. 8(4), pages 677-716, June.
    22. 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.
    23. Galor, Oded, 2005. "From Stagnation to Growth: Unified Growth Theory," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 4, pages 171-293, Elsevier.
    24. Roberta Capello, 2009. "Macroeconomic Regional Growth Models: Theoretical, Methodological and Empirical Contributions," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 8(3), pages 59-78.
    25. Dani Rodrik, 2013. "Unconditional Convergence in Manufacturing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 165-204.
    26. Mara P. Squicciarini & Nico Voigtländer, 2015. "Human Capital and Industrialization: Evidence from the Age of Enlightenment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(4), pages 1825-1883.
    27. Mikael Lindahl & Alan B. Krueger, 2001. "Education for Growth: Why and for Whom?," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1101-1136, December.
    28. Niebuhr, Annekatrin, 2000. "Convergence and the effects of spatial interaction," HWWA Discussion Papers 110, Hamburg Institute of International Economics (HWWA).
    29. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    30. Andrea Caragliu & Peter Nijkamp, 2012. "The impact of regional absorptive capacity on spatial knowledge spillovers: the Cohen and Levinthal model revisited," Applied Economics, Taylor & Francis Journals, vol. 44(11), pages 1363-1374, April.
    31. Domenica Panzera & Paolo Postiglione, 2014. "Economic growth in Italian NUTS 3 provinces," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 273-293, August.
    32. Carlo Ciccarelli & Stefano Fenoaltea, 2008. "Construction in Italy's Regions, 1861-1913," Rivista di storia economica, Società editrice il Mulino, issue 3, pages 303-340.
    33. Ward Romp & Jakob De Haan, 2007. "Public Capital and Economic Growth: A Critical Survey," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 8(S1), pages 6-52, April.
    34. repec:bdi:workqs:qse_1 is not listed on IDEAS
    35. Carlo Ciccarelli & Anna Missiaia, 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.
    36. Bernard Fingleton (ed.), 2003. "European Regional Growth," Advances in Spatial Science, Springer, number 978-3-662-07136-6.
    37. Leonardi, Robert, 1995. "Regional Development in Italy: Social Capital and the Mezzogiorno," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 11(2), pages 165-179, Summer.
    38. Bernard Fingleton, 2001. "Equilibrium and Economic Growth: Spatial Econometric Models and Simulations," Journal of Regional Science, Wiley Blackwell, vol. 41(1), pages 117-147, February.
    39. Nicola Gennaioli & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2013. "Human Capital and Regional Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(1), pages 105-164.
    40. Roberto Basile & Carlo Ciccarelli, 2018. "The location of the Italian manufacturing industry, 1871–1911: a sectoral analysis," Journal of Economic Geography, Oxford University Press, vol. 18(3), pages 627-661.
    41. Independent Evaluation Group, 2007. "A Decade of Action in Transport : An Evaluation of World Bank Assistance to the Transport Sector, 1995-2005," World Bank Publications - Books, The World Bank Group, number 6695, April.
    42. 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.
    43. Eckaus, Richard S., 1961. "The North-South Differential In Italian Economic Development," The Journal of Economic History, Cambridge University Press, vol. 21(3), pages 285-317, September.
    44. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, vol. 33(2), pages 143-156.
    45. J. V. Henderson & J. F. Thisse (ed.), 2004. "Handbook of Regional and Urban Economics," Handbook of Regional and Urban Economics, Elsevier, edition 1, volume 4, number 4.
    46. Bernard Fingleton & Enrique López‐Bazo, 2006. "Empirical growth models with spatial effects," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 177-198, June.
    47. Jonathan Temple, 2003. "Growth effects of education and social capital in the OECD countries," OECD Economic Studies, OECD Publishing, vol. 2001(2), pages 57-101.
    48. Lucio Picci, 1999. "Productivity and Infrastructure in the Italian Regions," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 58(3-4), pages 329-353, December.
    49. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlo Ciccarelli & Matteo Gomellini & Paolo Sestito, 2019. "Demography and Productivity in the Italian Manufacturing Industry: Yesterday and Today," CEIS Research Paper 457, Tor Vergata University, CEIS, revised 16 May 2019.
    2. Carlo Ciccarelli & Alberto Dalmazzo & Daniela Vuri, 2021. "Home Sweet Home: the Effect of Sugar Protectionism on Emigration in Italy, 1876‐1913," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 925-957, August.
    3. Andrea Filippetti & Neil Lee, 2021. "Individual risk attitudes and local unemployment: evidence from Italy in the Great Recession," Working Papers 53, Birkbeck Centre for Innovation Management Research, revised Apr 2021.
    4. Anna Missiaia, 2019. "Market versus endowment: explaining early industrial location in Italy (1871–1911)," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 13(1), pages 127-161, January.
    5. Han, Yonghui & Zhang, Fan & Huang, Liangxiong & Peng, Keming & Wang, Xianbin, 2021. "Does industrial upgrading promote eco-efficiency? ─A panel space estimation based on Chinese evidence," Energy Policy, Elsevier, vol. 154(C).
    6. Ciccarelli, Carlo & Magazzino, Cosimo & Marcucci, Edoardo, 2021. "Early development of Italian railways and industrial growth: A regional analysis," Research in Transportation Economics, Elsevier, vol. 88(C).
    7. Brian A'Hearn & Alexia Delfino & Alessandro Nuvolari, 2022. "Rethinking age heaping: a cautionary tale from nineteenth‐century Italy," Economic History Review, Economic History Society, vol. 75(1), pages 111-137, February.
    8. Gabriele Cappelli & Emanuele Felice & Julio Martínez-Galarraga & Daniel Tirado, 2018. "Still a long way to go: decomposing income inequality across Italy’s regions, 1871 – 2011," Working Papers 0123, European Historical Economics Society (EHES).
    9. Monica Bozzano & Gabriele Cappelli, 2019. "The legacy of history or the outcome of reforms? Primary education and literacy in Liberal Italy (1871-1911)," Department of Economics University of Siena 801, Department of Economics, University of Siena.
    10. Zhao, Nan & Liu, Xiaojie & Pan, Changfeng & Wang, Chenyang, 2021. "The performance of green innovation: From an efficiency perspective," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    11. Nicola Pontarollo & Roberto Ricciuti, 2020. "Railways and manufacturing productivity in Italy after unification," Journal of Regional Science, Wiley Blackwell, vol. 60(4), pages 775-800, September.
    12. Adrian Palacios-Mateo, 2023. "Education and household decision-making in Spanish mining communities, 1877–1924," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 17(2), pages 301-340, May.
    13. Maria Carmela Schisani & Luigi Balletta & Giancarlo Ragozini, 2021. "Crowding out the change: business networks and persisting economic elites in the South of Italy over Unification (1840–1880)," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 15(1), pages 89-131, January.
    14. Carlo Ciccarelli & Jacob Weisdorf, 2019. "Pioneering into the past: Regional literacy developments in Italy before Italy," European Review of Economic History, European Historical Economics Society, vol. 23(3), pages 329-364.
    15. Maria Carmela Schisani & Luigi Balletta & Giancarlo Ragozini, 2021. "Crowding out the change: business networks and persisting economic elites in the South of Italy over Unification (1840–1880)," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 15(1), pages 89-131, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:elg:eechap:14395_11 is not listed on IDEAS
    2. Alfredo Cartone & Paolo Postiglione, 2016. "Modelli spaziali di regressione quantilica per l?analisi della convergenza economica regionale," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2016(3), pages 28-48.
    3. Benos, Nikos & Karagiannis, Stelios, 2013. "Do Cross-Section Dependence and Parameter Heterogeneity Matter? Evidence on Human Capital and Productivity in Greece," MPRA Paper 53326, University Library of Munich, Germany.
    4. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    5. Adrien Montalbo, 2020. "Education supply and economic growth in nineteenth-century France," Working Papers halshs-02482643, HAL.
    6. Gabriele Cappelli & Michelangelo Vasta, 2021. "A “Silent Revolution”: school reforms and Italy’s educational gender gap in the Liberal Age (1861–1921)," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 15(1), pages 203-229, January.
    7. Maria ABREU & Henri L.F. DE GROOT & Raymond J.G.M. FLORAX, 2005. "Space And Growth: A Survey Of Empirical Evidence And Methods," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 21, pages 13-44.
    8. Sheila Chapman & Stefania Cosci & Loredana Mirra, 2012. "Income dynamics in an enlarged Europe: the role of capital regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(3), pages 663-693, June.
    9. Adrien Montalbo, 2020. "Education supply and economic growth in nineteenth-century France," PSE Working Papers halshs-02482643, HAL.
    10. Nikos Benos & Nikolaos Mylonidis & Stefania Zotou, 2017. "Estimating production functions for the US states: the role of public and human capital," Empirical Economics, Springer, vol. 52(2), pages 691-721, March.
    11. Harald Badinger & Gabriele Tondl, 2003. "Trade, Human Capital and Innovation: The Engines of European Regional Growth in the 1990s," Advances in Spatial Science, in: Bernard Fingleton (ed.), European Regional Growth, chapter 7, pages 215-239, Springer.
    12. Guilherme Resende & Alexandre Carvalho & Patrícia Sakowski & Túlio Cravo, 2016. "Evaluating multiple spatial dimensions of economic growth in Brazil using spatial panel data models," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 1-31, January.
    13. Adolfo Maza & María Hierro & José Villaverde, 2010. "Measuring intra-distribution income dynamics: an application to the European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(2), pages 313-329, October.
    14. David E. Bloom & Alex Khoury & Vadim Kufenko & Klaus Prettner, 2021. "Spurring Economic Growth through Human Development: Research Results and Guidance for Policymakers," Population and Development Review, The Population Council, Inc., vol. 47(2), pages 377-409, June.
    15. Oded Galor, 2024. "Unified Growth Theory: Roots of Growth and Inequality in the Wealth of Nations," CESifo Working Paper Series 11571, CESifo.
    16. 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.
    17. R. Basile & S. Usai, 2012. "Analysis of regional endogenous growth," Working Paper CRENoS 201211, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    18. Sivropoulos-Valero, Anna Alexandra, 2021. "Education and economic growth," LSE Research Online Documents on Economics 114434, London School of Economics and Political Science, LSE Library.
    19. Galor, Oded, 2024. "Unified Growth Theory: Engines of Growth and Inequality in the Wealth of Nations," IZA Discussion Papers 17491, Institute of Labor Economics (IZA).
    20. Breinlich, Holger & Ottaviano, Gianmarco I.P. & Temple, Jonathan R.W., 2014. "Regional Growth and Regional Decline," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 4, pages 683-779, Elsevier.
    21. Hans-Friedrich Eckey & Matthias Türck, 2007. "Convergence of EU-Regions. A Literature Report," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 10, pages 5-32.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    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-

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdi:workqs:qse_35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bdigvit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.