Regional Growth with Spatial Dependence: A Case Study on Early Italian Industrialization

37 Pages Posted: 17 May 2016

See all articles by Carlo Ciccarelli

Carlo Ciccarelli

University of Rome Tor Vergata - Faculty of Economics

Stefano Fachin

University of Rome I

Date Written: January 21, 2016

Abstract

The paper estimates a conditional ß-convergence model of labor productivity growth in Italy’s manufacturing industry during 1871-1911, accounting for spatial dependence. The empirical evidence is based on a recent set of data at provincial (NUTS 3) level on manufacturing value added at 1911 prices, and a new set of data on human and social capital, political participation, and infrastructures. By focusing on a country and a time when the agglomeration forces and spillover effects advocated by the new economic geography were only starting to operate, we can investigate a particularly interesting case study. Our results suggest that human capital, a cooperative culture, and initial productivity in neighboring provinces can explain much of the geographical variability of productivity growth in manufacturing in nineteenth-century Italy.

Keywords: ß-convergence, manufacturing, nineteenth-century, Italy, spatial dependence, labor productivity, human capital

JEL Classification: R11, O47, N64

Suggested Citation

Ciccarelli, Carlo and Fachin, Stefano, Regional Growth with Spatial Dependence: A Case Study on Early Italian Industrialization (January 21, 2016). Bank of Italy Economic History Working Paper No. 35, Available at SSRN: https://ssrn.com/abstract=2780394 or http://dx.doi.org/10.2139/ssrn.2780394

Carlo Ciccarelli (Contact Author)

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia n.2
Rome, rome 00100
Italy

Stefano Fachin

University of Rome I ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

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