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The Location of the Italian Manufacturing Industry 1871-1911: A Sectoral Analysis

Author

Listed:
  • Roberto Basile

    () (Department of Economics, Second University of Naples - University of Naples Federico II)

  • Carlo Ciccarelli

    (Department of Economics and Finance, University of Rome Tor Vergata - Università degli Studi di Roma Tor Vergata [Roma])

Abstract

Using a new dataset on value added at 1911 prices at province level for 12 industries, we analyze the spatial location patterns of manufacturing activity in Italy during the period 1871-1911. We test the effect of domestic market potential and factor endowment, focusing on water supply. The results show that, as transportation costs decreased and barriers to domestic trade were eliminated, Italian provinces became more and more specialized, and manufacturing activity increasingly concentrated in a few provinces, mostly belonging to the North-West part of the country. The estimation results corroborate the hypothesis that both comparative advantages (water endowment effect) and market potential (home-market effect) have been responsible of this pro cess of spatial concentration. The location of some traditional industries characterized by a low capital-lab or ratio (such as clothing and wo o d) was mainly driven by water endowment, while the lo cation of fast growing new sectors characterized by a medium/high capital lab or ratio (such as engineering, metal-making, chemicals, textile and paper) was mainly driven by the domestic market potential.

Suggested Citation

  • Roberto Basile & Carlo Ciccarelli, 2015. "The Location of the Italian Manufacturing Industry 1871-1911: A Sectoral Analysis," Post-Print hal-01430824, HAL.
  • Handle: RePEc:hal:journl:hal-01430824
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01430824
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    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. repec:bla:presci:v:96:y:2017:i:4:p:675-695 is not listed on IDEAS
    3. repec:spr:cliomt:v:13:y:2019:i:1:d:10.1007_s11698-018-0172-6 is not listed on IDEAS
    4. 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.
    5. 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.
    6. repec:afc:cliome:v:13:y:2019:i:1:p:127-161 is not listed on IDEAS

    More about this item

    Keywords

    Market potential; Factor endowment; Concentration; Italy;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913

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