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Italy’s decline: getting the facts right

  • F. Daveri
  • C. Jona-Lasinio

    ()

The Italian economy is often said to be on a declining path. In this paper, we document that: (i) Italy’s current decline is a labor productivity problem (ii) the labor productivity slowdown stems from declining productivity growth in all industries but utilities (with manufacturing contributing for about one half of the reduction) and diminished interindustry reallocation of workers from agriculture to market services; (iii) the labor productivity slowdown has been mostly driven by declining TFP, with roughly unchanged capital deepening. The only mild decline of capital deepening is due to the rise in the value added share of capital that counteracted declining capital accumulation.

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File URL: http://swrwebeco.econ.unipr.it/RePEc/pdf/I_2006-01.pdf
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Paper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number 2006-EP01.

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Length: 45 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:par:dipeco:2006-ep01
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Web page: http://economia.unipr.it/de
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  10. Marianne Baxter & Dorsey D. Farr, 2001. "The Effects of Variable Capital Utilization on the Measurement and Properties of Sectoral Productivity: Some International Evidence," NBER Working Papers 8475, National Bureau of Economic Research, Inc.
  11. Antonio Bassanetti & Massimiliano Iommi & Cecilia Jona-Lasinio & Francesco Zollino, 2004. "La crescita dell'economia italiana negli anni novanta tra ritardo tecnologico e rallentamento della produttivit�," Temi di discussione (Economic working papers) 539, Bank of Italy, Economic Research and International Relations Area.
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