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The Roots of a Dual Equilibrium: GDP, Productivity and Structural Change in the Italian Regions in the Long-run (1871-2011)

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  • Emanuele Felice

    () (Università degli Studi "G. d'Annunzio" Chieti - Pescara)

Abstract

This paper explores the evolution of Italy's regional inequality in the long run, from around Unification (1871) until our days (2011). To this scope, a unique and up-to-date dataset of GDP per capita, GDP per worker (productivity) and employment, at the NUTS II level and at current borders, for the whole economy and its three branches - agriculture, industry, services - is here presented and discussed. Sigma and beta convergence are tested for GDP per capita, productivity and workers per capita (employment/population). Four phases in the history of regional inequality in post-unification Italy are confronted: mild divergence (the liberal age), strong divergence (the two world wars and Fascism), general convergence (the golden age) and the "two-Italies" polarization. In this last period, for the first time GDP and productivity, as well as workers per capita and productivity, have been following opposite paths: the North-South divide increased in GDP, decreased in productivity.

Suggested Citation

  • Emanuele Felice, 2017. "The Roots of a Dual Equilibrium: GDP, Productivity and Structural Change in the Italian Regions in the Long-run (1871-2011)," Quaderni di storia economica (Economic History Working Papers) 40, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:workqs:qse_40
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Italy; regional convergence; long-run growth; economic geography; institutions;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-

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