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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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  19. Daniel Aurelio Tirado Fabregat & Jordi Pons Novell & Elisenda Paluzie Hernandez, 2003. "Industrial agglomerations and wage gradients: the Spanish economy in the interwar period," Working Papers in Economics 103, Universitat de Barcelona. Espai de Recerca en Economia.
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