IDEAS home Printed from https://ideas.repec.org/p/cca/wpaper/503.html
   My bibliography  Save this paper

The socio-institutional divide. Explaining Italy's regional inequality over the long run

Author

Listed:
  • Emanuele Felice

Abstract

In recent years there have been major advances in the research about the historical pattern of regional inequality in Italy and its historical roots: new and more accurate estimates of regional GDP, as well as of social indicators (human capital, life expectancy, HDI, heights, inequality, social capital) and other indices (market potential), running roughly from around the Unification to our days, are now available. By the light of this up-to-date information, the article reviews the debate about the determinants of regional development in Italy, within the broader framework of the country’s industrial take-off and modern economic growth, and connects it to the main strands of the international literature. After critically discussing the competing hypotheses proposed to account for the different patterns observed and the North-South divide, a different explanation – and the main argument of the article – is presented: a North-South socio institutional divide pre-existed Unification, in some respects grew stronger with it and was never bridged throughout the history of post-Unification Italy; such a divide ultimately impacted on the levels of human and social capital, as well as upon differences in policies and institutional performance, and thus on economic growth.

Suggested Citation

  • Emanuele Felice, 2017. "The socio-institutional divide. Explaining Italy's regional inequality over the long run," Carlo Alberto Notebooks 503, Collegio Carlo Alberto.
  • Handle: RePEc:cca:wpaper:503
    as

    Download full text from publisher

    File URL: https://www.carloalberto.org/wp-content/uploads/2018/11/no.503.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Emanuele Felice & Amedeo Lepore, 2017. "State intervention and economic growth in Southern Italy: the rise and fall of the ‘Cassa per il Mezzogiorno’ (1950–1986)," Business History, Taylor & Francis Journals, vol. 59(3), pages 319-341, April.
    4. Giordano, Claire & Giugliano, Ferdinando, 2015. "A tale of two Fascisms: Labour productivity growth and competition policy in Italy, 1911–1951," Explorations in Economic History, Elsevier, vol. 55(C), pages 25-38.
    5. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
      • Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
      • Barro, Robert J. & Sala-i-Martin, Xavier, 1992. "Convergence," Scholarly Articles 3451299, Harvard University Department of Economics.
    6. Daniele, Vittorio & Malanima, Paolo, 2011. "Are people in the South less intelligent than in the North? IQ and the North–South disparity in Italy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 844-852.
    7. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    8. Anna Spadavecchia, 2005. "Financing Industrial Districts in Italy, 1971-91: A Private Venture?," Business History, Taylor & Francis Journals, vol. 47(4), pages 569-593.
    9. Anna Missiaia, 2016. "Where do we go from here? Market access and regional development in Italy (1871–1911)," European Review of Economic History, Oxford University Press, vol. 20(2), pages 215-241.
    10. Felice, Emanuele & Carreras, Albert, 2012. "When did modernization begin? Italy's industrial growth reconsidered in light of new value-added series, 1911–1951," Explorations in Economic History, Elsevier, vol. 49(4), pages 443-460.
    11. Stefano Fenoaltea, 2007. "I due fallimenti della storia economica: il periodo post-unitario," Rivista di Politica Economica, SIPI Spa, vol. 97(2), pages 341-358, March-Apr.
    12. Gerschenkron, Alexander, 1955. "Notes on the Rate of Industrial Growth in Italy, 1881–1913," The Journal of Economic History, Cambridge University Press, vol. 15(4), pages 360-375, December.
    13. Jutta Bolt & Jan Luiten Zanden, 2014. "The Maddison Project: collaborative research on historical national accounts," Economic History Review, Economic History Society, vol. 67(3), pages 627-651, August.
    14. Maria Bigoni & Stefania Bortolotti & Marco Casari & Diego Gambetta & Francesca Pancotto, 2016. "Amoral Familism, Social Capital, or Trust? The Behavioural Foundations of the Italian North–South Divide," Economic Journal, Royal Economic Society, vol. 126(594), pages 1318-1341, August.
    15. 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.
    16. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
    17. Fenoaltea, Stefano, 2003. "Peeking Backward: Regional Aspects of Industrial Growth in Post-Unification Italy," The Journal of Economic History, Cambridge University Press, vol. 63(4), pages 1059-1102, December.
    18. Gabriele Cappelli, 2016. "Escaping from a human capital trap? Italy's regions and the move to centralized primary schooling, 1861–1936," European Review of Economic History, Oxford University Press, vol. 20(1), pages 46-65.
    19. Emanuele Felice, 2011. "Regional value added in Italy, 1891–2001, and the foundation of a long‐term picture," Economic History Review, Economic History Society, vol. 64(3), pages 929-950, August.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Emanuele Felice, 2011. "The Rule and the Exception: Italy’s Regional Imbalances (1891-2001) through a Shift-Share Analysis," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 4, December.
    3. 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.
    4. Emanuele Felice, 2011. "The determinants of Italy's regional imbalances over the long run: exploring the contributions of human and social capital," Oxford Economic and Social History Working Papers _088, University of Oxford, Department of Economics.
    5. Alfonso Díez‐Minguela & Rafael González‐Val & Julio Martinez‐Galarraga & M. Teresa Sanchis & Daniel A. Tirado, 2020. "The long‐term relationship between economic development and regional inequality: South‐West Europe, 1860–2010," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 479-508, June.
    6. Emanuele Felice, 2011. "The determinants of Italy’s regional imbalances over the long run: exploring the contributions of human and social capital," Oxford University Economic and Social History Series _088, Economics Group, Nuffield College, University of Oxford.
    7. Paolo Di Martino & Emanuele Felice & Michelangelo Vasta, 2017. "The curious case of the coexistence of two “access-orders”: Explaining the Italian regional divide," Department of Economics University of Siena 758, Department of Economics, University of Siena.
    8. 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.
    9. Kerstin Enflo & Joan Ramón Rosés, 2015. "Coping with regional inequality in Sweden: structural change, migrations, and policy, 1860–2000," Economic History Review, Economic History Society, vol. 68(1), pages 191-217, February.
    10. Carlo Ciccarelli & Stefano Fachin, 2017. "Regional growth with spatial dependence: A case study on early Italian industrialization," Papers in Regional Science, Wiley Blackwell, vol. 96(4), pages 675-695, November.
    11. Nicola Pontarollo & Roberto Ricciuti, 2015. "Railways and the Productivity Gap in Italy: Persistence and Divergence after Unification," CESifo Working Paper Series 5438, CESifo.
    12. Michael Beenstock & Daniel Felsenstein, 2003. "Decomposing the Dynamics of Regional Earnings Disparities in Israel," ERSA conference papers ersa03p90, European Regional Science Association.
    13. Michaela Chocholatá & Andrea Furková, 2017. "Does the location and the institutional background matter in convergence modelling of the EU regions?," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(3), pages 679-697, September.
    14. Marcos Sanso-Navarro & María Vera-Cabello, 2015. "Non-linearities in regional growth: A non-parametric approach," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 19-38, November.
    15. Pozzolo, Alberto Franco, 2004. "Endogenous Growth in Open Economies - A Survey of Major Results," Economics & Statistics Discussion Papers esdp04020, University of Molise, Dept. EGSeI.
    16. Gruševaja, Marina & Pusch, Toralf, 2011. "How does Institutional Setting Affect the Impact of EU Structural Funds on Economic Cohesion? New Evidence from Central and Eastern Europe," IWH Discussion Papers 17/2011, Halle Institute for Economic Research (IWH).
    17. Panagiotis KOUDOUMAKIS & George BOTZORIS & Angelos PROTOPAPAS, 2021. "The Contribution Of Cohesion Policy To The Development And Convergence Of The Regions Of The European Union," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 277-290, June.
    18. Charles R. Hulten & Robert M. Schwab, 1993. "Endogenous Growth, Public Capital, and the Convergence of Regional Manufacturing Industries," NBER Working Papers 4538, National Bureau of Economic Research, Inc.
    19. Ezcurra, Roberto & Rodríguez-Pose, Andrés, 2013. "Does Economic Globalization affect Regional Inequality? A Cross-country Analysis," World Development, Elsevier, vol. 52(C), pages 92-103.
    20. Jens K. Perret, 2019. "Regional Convergence in the Russian Federation: Spatial and Temporal Dynamics," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(1), pages 11-39, March.

    More about this item

    Keywords

    Italy; regional inequality; institutions; path dependence;
    All these keywords.

    JEL classification:

    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    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:cca:wpaper:503. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/fccaait.html .

    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: Giovanni Bert (email available below). General contact details of provider: https://edirc.repec.org/data/fccaait.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.