Internal Geography and External Trade: regional disparities in Italy, 1861-2011

Anthony Venables and Brian A'Hearn

No 8655, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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 (search for similar items in EconPapers)
JEL-codes: F14 F15 N63 N64 N93 N94 R11 R12 (search for similar items in EconPapers)
Date: 2011-11
New Economics Papers: this item is included in nep-geo, nep-his and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Internal Geography and External Trade: regional disparities in Italy, 1861-2011 (2011)
Working Paper: Internal Geography and External Trade: regional disparities in Italy, 1861-2011 (2011)
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