Regional Growth with Spatial Dependence: A Case Study on Early Italian Industrialization
37 Pages Posted: 17 May 2016
Date Written: January 21, 2016
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: Suggested Citation