Internal Geography and External Trade: Regional Disparities in Italy, 1861-2011

57 Pages Posted: 23 Mar 2013

See all articles by Brian A'Hearn

Brian A'Hearn

Pembroke College, Oxford

Anthony J. Venables

University of Oxford; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: October 25, 2011

Abstract

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.

Keywords: industrialisation, market integration, new economic geography, geographic concentration, Italian regions

JEL Classification: F14, F15, N63, N64, N93, N94, R11, R12

Suggested Citation

A'Hearn, Brian and Venables, Anthony J., Internal Geography and External Trade: Regional Disparities in Italy, 1861-2011 (October 25, 2011). Bank of Italy Economic History Working Paper No. 12. Available at SSRN: https://ssrn.com/abstract=2236729 or http://dx.doi.org/10.2139/ssrn.2236729

Brian A'Hearn (Contact Author)

Pembroke College, Oxford ( email )

Department of Economics
Manor Road
Oxford, OX1 3UQ
United Kingdom

Anthony J. Venables

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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