IDEAS home Printed from https://ideas.repec.org/p/usi/wpaper/663.html
   My bibliography  Save this paper

Italy’s Modern Economic Growth, 1861-2011

Author

Listed:
  • Emanuele Felice

    ()

  • Giovanni Vecchi

    ()

Abstract

By making the most of a newly-available large set of historical statistics, the paper outlines the main features of Italy’s modern economic growth from unification (1861) until the present day (2011). Alongside national GDP estimates, regional inequality, living standards and inequality of personal income distribution are also discussed. Over the long run, Italy successfully caught up with the most advanced economies, and did so in a virtuous manner: while the regional imbalance persisted, at the national level economic growth was accompanied by a secular decline in income inequality. This pattern has come to a halt: during the last two decades, stagnation in GDP per capita has been mirrored by an unprecedented decline in productivity; southern regions have further lagged behind the rest of the country, and income inequality is on the rise. Italy has entered a phase of rapid relative economic decline.

Suggested Citation

  • Emanuele Felice & Giovanni Vecchi, 2012. "Italy’s Modern Economic Growth, 1861-2011," Department of Economics University of Siena 663, Department of Economics, University of Siena.
  • Handle: RePEc:usi:wpaper:663
    as

    Download full text from publisher

    File URL: http://repec.deps.unisi.it/quaderni/663.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Christian Morrisson & Fabrice Murtin, 2009. "The Century of Education," Journal of Human Capital, University of Chicago Press, vol. 3(1), pages 1-42.
    2. Matthias Morys & Guillaume Daudin, 2008. "Globalization, 1870-1914," Economics Series Working Papers 395, University of Oxford, Department of Economics.
    3. Matteo Gomellini & Cormac O' Grada, 2011. "Outward and Inward Migrations in Italy: A Historical Perspective," Quaderni di storia economica (Economic History Working Papers) 08, Bank of Italy, Economic Research and International Relations Area.
    4. Nicholas Crafts, 2005. "Regional Gdp In Britain, 1871-1911: Some Estimates," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(1), pages 54-64, February.
    5. Zamagni, Vera, 1997. "The Economic History of Italy 1860-1990," OUP Catalogue, Oxford University Press, number 9780198292890.
    6. Harold James & Kevin H. O'Rourke, 2011. "Italy and the first age of globalization, 1861-1940," Quaderni di storia economica (Economic History Working Papers) 16, Bank of Italy, Economic Research and International Relations Area.
    7. repec:bdi:workqs:qse_08 is not listed on IDEAS
    8. Broadberry, Stephen & Giordano, Claire & Zollino, Francesco, 2011. "A Sectoral Analysis of Italy's Development: 1861 -2010," CAGE Online Working Paper Series 62, Competitive Advantage in the Global Economy (CAGE).
    9. Emanuele Felice, 2005. "Il valore aggiunto regionale. Una stima per il 1891 e per il 1911 e alcune elaborazioni di lungo periodo (1891-1971)," Rivista di storia economica, Società editrice il Mulino, issue 3, pages 273-314.
    10. Atkinson, A B, 1997. "Bringing Income Distribution in from the Cold," Economic Journal, Royal Economic Society, vol. 107(441), pages 297-321, March.
    11. Feldstein, Martin & Horioka, Charles, 1980. "Domestic Saving and International Capital Flows," Economic Journal, Royal Economic Society, vol. 90(358), pages 314-329, June.
    12. Broadberry,Stephen & O'Rourke,Kevin H., 2010. "The Cambridge Economic History of Modern Europe," Cambridge Books, Cambridge University Press, number 9780521708395, March.
    13. 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.
    14. Amartya Sen, 1976. "Real National Income," Review of Economic Studies, Oxford University Press, vol. 43(1), pages 19-39.
    15. E. Felice, 2002. "Le politiche economiche regionali in Italia e nel Regno Unito (1950-1989)," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1-2, pages 175-238.
    16. Fabrizio Balassone & Maura Francese & Angelo Pace, 2011. "Public Debt and Economic Growth in Italy," Quaderni di storia economica (Economic History Working Papers) 11, Bank of Italy, Economic Research and International Relations Area.
    17. Fenoaltea, Stefano, 1988. "International resource flows and construction movements in the atlantic economy: the kuznets cycle in Italy, 1861–1913," The Journal of Economic History, Cambridge University Press, vol. 48(03), pages 605-637, September.
    18. Emanuele Felice, 2012. "Regional convergence in Italy, 1891–2001: testing human and social capital," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(3), pages 267-306, October.
    19. Crafts, Nicolas & Magnani, Marco, 2011. "The Golden Age and the Second Globalization in Italy," CAGE Online Working Paper Series 61, Competitive Advantage in the Global Economy (CAGE).
    20. Giovanni Iuzzolino & Guido Pellegrini & Gianfranco Viesti, 2011. "Convergence among Italian Regions, 1861-2011," Quaderni di storia economica (Economic History Working Papers) 22, Bank of Italy, Economic Research and International Relations Area.
    21. Emanuele Felice & Albert Carreras, 2012. "The roots of success: industrial growth in Italy reconsidered, 1911-1951," UHE Working papers 2012_04, Universitat Autònoma de Barcelona, Departament d'Economia i Història Econòmica, Unitat d'Història Econòmica.
    22. Vittorio Daniele & Paolo Malanima, 2007. "Il prodotto delle regioni e il divario Nord-Sud in Italia (1861-2004)," Rivista di Politica Economica, SIPI Spa, vol. 97(2), pages 267-316, March-Apr.
    23. Emanuele Felice, 2005. "Il reddito delle regioni italiane nel 1938 e nel 1951. Una stima basata sul costo del lavoro," Rivista di storia economica, Società editrice il Mulino, issue 1, pages 3-30.
    24. 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.
    25. Andrea Brandolini & Giovanni Vecchi, 2011. "The Well-Being of Italians: A Comparative Historical Approach," Quaderni di storia economica (Economic History Working Papers) 19, Bank of Italy, Economic Research and International Relations Area.
    26. Ugo Pagano, 2007. "Cultural globalisation, institutional diversity and the unequal accumulation of intellectual capital," Cambridge Journal of Economics, Oxford University Press, vol. 31(5), pages 649-667, September.
    27. Kuznets, Simon, 1973. "Modern Economic Growth: Findings and Reflections," American Economic Review, American Economic Association, vol. 63(3), pages 247-258, June.
    28. Barbara Pistoresi & Alberto Rinaldi, 2010. "Exports,growth and causality. New evidence on Italy: 1863-2004," Department of Economics 0633, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    29. Emanuele Felice, 2011. "Regional value added in Italy, 1891–2001, and the foundation of a long‐term picture," Economic History Review, Economic History Society, vol. 64(3), pages 929-950, August.
    30. Thomas Piketty, 2003. "Income Inequality in France, 1901-1998," Journal of Political Economy, University of Chicago Press, vol. 111(5), pages 1004-1042, October.
    31. Gianni Toniolo, 2003. "La storia economica dell'Italia liberale: una rivoluzione in atto," Rivista di storia economica, Società editrice il Mulino, issue 3, pages 247-264.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paolo Di Martino & Michelangelo Vasta, 2012. "Happy 150th Birthday Italy? Institutions and Economic Performance Since 1861," Department of Economics University of Siena 662, Department of Economics, University of Siena.
    2. Andrea Colli & Alberto Rinaldi, 2012. "Institutions, Politics and the Corporate Economy," Department of Economics University of Siena 664, Department of Economics, University of Siena.
    3. Paolo DI Martino & Michelangelo Vasta, 2014. "Discovering the dark heart of Italian capitalism: a perspective from Supreme Court legal cases and business consultants’ analyses (1950s-1970s)," Department of Economics University of Siena 698, Department of Economics, University of Siena.
    4. Emanuele Felice & Michelangelo Vasta, 2015. "Passive modernization? The new human development index and its components in Italy's regions (1871–2007)," European Review of Economic History, Oxford University Press, vol. 19(1), pages 44-66.
    5. repec:sgh:annals:i:47:y:2017:p:43-64 is not listed on IDEAS
    6. Domini, Giacomo, 2015. "The innovation-trade nexus: Italy in historical perspective (1861-1939)," MERIT Working Papers 055, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Emanuele Felice & Josep Pujol Andreu, 2013. "GDP and life expectancy in Italy and Spain over the long-run (1861-2008): insights from a time-series approach," UHE Working papers 2013_06, Universitat Autònoma de Barcelona, Departament d'Economia i Història Econòmica, Unitat d'Història Econòmica.

    More about this item

    Keywords

    GDP; productivity; modern economic growth; living standards; inequality; poverty;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:usi:wpaper:663. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fabrizio Becatti). General contact details of provider: http://edirc.repec.org/data/desieit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.