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

  • Brian A'Hearn
  • Tony Venables

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.

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File URL: http://www.economics.ox.ac.uk/materials/papers/5441/paper578.pdf
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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 578.

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Date of creation: 01 Nov 2011
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Handle: RePEc:oxf:wpaper:578
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  1. Giovanni Vecchi & Michela Coppola, 2004. "Nutrition And Growth In Italy, 1861-1911 What Macroeconomic Data Hide," Working Papers in Economic History wh043101, Universidad Carlos III, Instituto Figuerola de Historia y Ciencias Sociales.
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  3. Elisenda Paluzie & Jordi Pons & Javier Silvestre & Daniel Tirado, 2009. "Migrants and market potential in Spain over the twentieth century: a test of the new economic geography," Spanish Economic Review, Springer, vol. 11(4), pages 243-265, December.
  4. Pierre-Philippe Combes & Miren Lafourcade & Jacques-François Thisse & Jean-Claude Toutain, 2008. "The rise and fall of spatial inequalities in France: A long-run perspective," PSE Working Papers halshs-00586214, HAL.
  5. Thierry Mayer, 2009. "Market Potential and Development," Working Papers 2009-24, CEPII research center.
  6. Fenoaltea, Stefano, 2003. "Peeking Backward: Regional Aspects of Industrial Growth in Post-Unification Italy," The Journal of Economic History, Cambridge University Press, vol. 63(04), pages 1059-1102, December.
  7. Giovanni Federico & Antonio Tena Junguito, 1998. "Did trade policy foster Italian industrialization evidences from the effective production rates 1870-1930," Working Papers in Economic History wh985504, Universidad Carlos III, Instituto Figuerola de Historia y Ciencias Sociales.
  8. Andrei A. Levchenko, 2008. "International Trade and Institutional Change," Working Papers 579, Research Seminar in International Economics, University of Michigan.
  9. Daron Acemoglu & Simon Johnson & James Robinson, 2002. "The Rise of Europe: Atlantic Trade, Institutional Change and Economic Growth," NBER Working Papers 9378, National Bureau of Economic Research, Inc.
  10. Faini, Riccardo, 1983. "Cumulative processes of de-industrialisation in an open region : The case of Southern Italy, 1951-1973," Journal of Development Economics, Elsevier, vol. 12(3), pages 277-301, June.
  11. Redding, Stephen & Venables, Anthony J., 2004. "Economic geography and international inequality," Journal of International Economics, Elsevier, vol. 62(1), pages 53-82, January.
  12. Esteves, Rui & Khoudour-Castéras, David, 2011. "Remittances, capital flows and financial development during the mass migration period, 1870–1913," European Review of Economic History, Cambridge University Press, vol. 15(03), pages 443-474, December.
  13. Barry Eichengreen, 2006. "Introduction to The European Economy since 1945: Coordinated Capitalism and Beyond
    [The European Economy since 1945: Coordinated Capitalism and Beyond]
    ," Introductory Chapters, Princeton University Press.
  14. Federico, Giovanni & Tena, Antonio, 1998. "Was Italy a protectionist country?," European Review of Economic History, Cambridge University Press, vol. 2(01), pages 73-97, April.
  15. 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, 02.
  16. Venables, Anthony J, 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers 802, C.E.P.R. Discussion Papers.
  17. repec:bdi:workqs:qse_09 is not listed on IDEAS
  18. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
  19. Carreras Albert & Felice Emanuele, 2010. "L'industria italiana dal 1911 al 1938: ricostruzione della serie del valore aggiunto e interpretazioni," Rivista di storia economica, Società editrice il Mulino, issue 3, pages 285-334.
  20. Federico, Giovanni, 2007. "Market integration and market efficiency: The case of 19th century Italy," Explorations in Economic History, Elsevier, vol. 44(2), pages 293-316, April.
  21. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
  22. Keith Head & Thierry Mayer, 2011. "Gravity, market potential and economic development," Journal of Economic Geography, Oxford University Press, vol. 11(2), pages 281-294, March.
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