From Fields to Factories: Malaria Eradication and Structural Transformation in Post-War Italy

Paolo Buonanno, Giampaolo Lecce, Vitantonio Mariella and Laura Ogliari

No 20394, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper studies the long-term economic impact of malaria eradication in post-war Italy, one of the first countries to implement a nationwide campaign (1947–mid 1950s). Using a new panel dataset (1911–1981) and a matched difference-in-differences approach, we compare historically malarial areas to non-malarial areas with similar pre-treatment characteristics. We find that eradication significantly accelerated structural transformation, boosting industrial and manufacturing employment. These effects unfolded gradually and are robust to controls for confounding policies and divergent local growth paths. Mechanism analysis reveals that eradication raised agricultural productivity by enabling a more efficient crop mix and fostering mechanization, particularly where potential for modernization was highest. The study offers new insights into how health improvements can drive economic development.

Keywords: Structural change; Agricultural productivity (search for similar items in EconPapers)
JEL-codes: I15 N34 O18 R11 (search for similar items in EconPapers)
Date: 2025-07
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