Advanced

Where do we go from here? Market access and regional development in Italy (1871–1911)

Missiaia, Anna LU (2016) In European Review of Economic History 20(2). p.215-241
Abstract
Italy has been characterized, throughout its unitary history, by large regional differentials in income, level of industrialization, and development. This article aims at testing the New Economic Geography hypothesis on the role of market access in explaining these regional differentials. We first quantify the market potentials of the Italian regions. We then use these estimates to study the causal link between GDP per capita and market potential. The main result of this article is that only domestic market potential, which represents the home market, shows a “traditional” North–South divide. When international markets are introduced, the South does not appear to lag behind. Regression analysis confirms that market potential is a strong... (More)
Italy has been characterized, throughout its unitary history, by large regional differentials in income, level of industrialization, and development. This article aims at testing the New Economic Geography hypothesis on the role of market access in explaining these regional differentials. We first quantify the market potentials of the Italian regions. We then use these estimates to study the causal link between GDP per capita and market potential. The main result of this article is that only domestic market potential, which represents the home market, shows a “traditional” North–South divide. When international markets are introduced, the South does not appear to lag behind. Regression analysis confirms that market potential is a strong determinant of GDP per capita only in its domestic formulation. This suggests that the home market in this period mattered far more for growth than the international markets, casting new light on one of the classical explanations to the North–South divide. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
European Review of Economic History
volume
20
issue
2
pages
215 - 241
publisher
Cambridge University Press
external identifiers
  • Scopus:84973115756
ISSN
1474-0044
DOI
10.1093/ereh/hew003
language
English
LU publication?
yes
id
7505dd6f-a52e-4ed0-8744-e0bdfa0dfbc5
alternative location
http://ereh.oxfordjournals.org/content/20/2/215.full
date added to LUP
2016-06-20 15:00:58
date last changed
2016-10-13 05:10:23
@misc{7505dd6f-a52e-4ed0-8744-e0bdfa0dfbc5,
  abstract     = {Italy has been characterized, throughout its unitary history, by large regional differentials in income, level of industrialization, and development. This article aims at testing the New Economic Geography hypothesis on the role of market access in explaining these regional differentials. We first quantify the market potentials of the Italian regions. We then use these estimates to study the causal link between GDP per capita and market potential. The main result of this article is that only domestic market potential, which represents the home market, shows a “traditional” North–South divide. When international markets are introduced, the South does not appear to lag behind. Regression analysis confirms that market potential is a strong determinant of GDP per capita only in its domestic formulation. This suggests that the home market in this period mattered far more for growth than the international markets, casting new light on one of the classical explanations to the North–South divide.},
  author       = {Missiaia, Anna},
  issn         = {1474-0044},
  language     = {eng},
  number       = {2},
  pages        = {215--241},
  publisher    = {ARRAY(0x9e6b7c8)},
  series       = {European Review of Economic History},
  title        = {Where do we go from here? Market access and regional development in Italy (1871–1911)},
  url          = {http://dx.doi.org/10.1093/ereh/hew003},
  volume       = {20},
  year         = {2016},
}