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Internal Geography and External Trade: regional disparities in Italy, 1861-2011

Author

Listed:
  • Brian A'Hearn
  • Anthony J. Venables

Abstract

This paper explores the interactions between external trade and regional disparities in the Italian economy since unification. It argues that the advantage of the North was initially based on natural advantage (in particular the endowment of water, intensive in silk production). From 1880 onwards the share of exports in GDP stagnated and then declined; domestic market access therefore became a key determinant of industrial location, inducing fast growing new sectors (especially engineering) to locate in regions with a large domestic market, i.e. in the North. From 1945 onwards trade growth and European integration meant that foreign market access was the decisive factor; the North had the advantage of proximity to these markets.

Suggested Citation

  • Brian A'Hearn & Anthony J. Venables, 2011. "Internal Geography and External Trade: regional disparities in Italy, 1861-2011," Economics Series Working Papers 578, University of Oxford, Department of Economics.
  • Handle: RePEc:oxf:wpaper:578
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    File URL: http://www.economics.ox.ac.uk/materials/papers/5441/paper578.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Industrialisation; Market integration; New economic geography; Geographic concentration; Italian regions;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • N63 - Economic History - - Manufacturing and Construction - - - Europe: Pre-1913
    • N64 - Economic History - - Manufacturing and Construction - - - Europe: 1913-
    • N93 - Economic History - - Regional and Urban History - - - Europe: Pre-1913
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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