The Italian Crisis within the European Crisis. The Relevance of the Technological Foreign Constraint
Stefano Lucarelli () and
Additional contact information
Roberto Romano: IGCL (Italian General Confederation of Labour)
World Economic Review, 2016, vol. 2016, issue 6, 12
The debate on the Italian economic crisis in the Euro zone should address a fundamental issue: what is the origin of the decline in productivity that affected the Italian economic system even before the European crisis begun in 2010? We argue that the effective demand can be revived only by governing the structural economic dynamics. Embracing a theoretical approach that may be called “structuralism” in line with the contributions by Leon (1965), Sylos Labini (1977) and Pasinetti (1993), we will propose to analyze the technological causes that may explain the balance-of-payment constraint affecting year by year the Italian growth. In this perspective we will introduce the notion of technological foreign constraint. We will argue that such a phenomenon, not the increasing public debt, constitutes the shock that deteriorated the Italian labour productivity in the last twenty five years. In the last part of the article we will also present an empirical proof of the previous thesis, by showing the technological dependence of the Italian economic system by the German economic system, through the estimation of the productivity gap equation. We propose this equation drawing inspiration from Paolo Sylos Labini (1984, 1993, 2004).
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
http://wer.worldeconomicsassociation.org/papers/th ... -foreign-constraint/ (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wea:worler:v:2016:y:2016:i:6:p:12
Access Statistics for this article
World Economic Review is currently edited by Kyla Rushman
More articles in World Economic Review from World Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Jake McMurchie ().