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

Carlo Ciccarelli () and Stefano Fachin

No 35, Quaderni di storia economica (Economic History Working Papers) from Bank of Italy, Economic Research and International Relations Area

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 (search for similar items in EconPapers)
JEL-codes: N64 O47 R11 (search for similar items in EconPapers)
Date: 2016-02
New Economics Papers: this item is included in nep-eff, nep-geo, nep-gro, nep-his and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: Regional growth with spatial dependence: A case study on early Italian industrialization (2017)
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