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date: 14 December 2019

(p. 773) Index

(p. 773) Index

Note: Material in figures or tables is indicated by italic page numbers. Endnotes are indicated by n. after the page number.

absorptive capacity, 397, 399, 408–409, 412–413, 414
Abulafia, David, 147
Abyssinia, 64, 360
Ackley, Gardner, 147, 149, 153
administrative districts, 576, 597 n. 4
administrative system in Italy, 13, 98–99, 533–538, 540–549, 560–561, 566–567
“Charter for Public Services” (Cassese), 565
Civil Code of 1865, 13, 559
Commercial Code of 1882, 13
corruption, 538, 561–562
education of public administration employees, 549
enti pubblici autonomi, 542, 562–563
infrastructure and public works investment, 539
international comparisons, 98–99, 537–538
Law 4/68 (self–certification enforcement), 565
Law 29/93 (rules for public employees), 565
Law 142/90 (local administrations), 564–565
Law 142/90 (local autonomy), 565
Law 241/90 (administrative procedures), 565
lawyers in administration, role of, 548–549
number of laws passed yearly, 560, 561
number of pages per law, 560, 561
parallel administrations, 542, 562–564, 566
political influence over bureaucracy, 546–548, 566
“Report on the Main Problems of State Administration” (Giannini), 564
performance measures, 538–540
rule of law indicators, 98–99, 123, 538 See also civil justice system
ageing index, 229
Agnelli, Giovanni, 142, 477, 478
agriculture
and competitive advantage, 457
and education, 252–253
structural change, 76, 79, 188–190
impact on growth, 151 (Romeo),
employment, 6, 189–190
and innovation, 382
production growth, 1897–1913, 16
labor productivity, 28, 190–197, 204–207
labor productivity, international comparison, 207–210
land reform, 110, 111
national accounts, methodology, 176–178, 182–183, 185
regional disparities, 604–613
South, 141, 576–577, 583, 585, 587
value added, 10, 166, 167 See also silk industry; tariffs
allocation of resources by banks, 513–514, 487–489, 492, 495–513
institutional distortions, 488–489, 514 n. 3
real credit by sectors, 1948–1982, 495–496, 497
real credit by sectors, 1983–2009, 496, 498 See also banking system; growth opportunities (GOs); price/earnings (PE) ratios
Ansaldo, 16, 443, 458, 476
Atkinson index of per capita income, 233, 234–236, 237
autarky in 1930s, xi, 19–20, 57, 246, 383, 328, 461, 583, 600, 615
decreased foreign direct investments, 383
exports, 422, 423
Institute for Industrial Reconstruction (IRI), 58–60
patenting, 389
trade liberalization after autarky, 20–21
trade sanctions against Italy, 360, 373
backwardness (Italian), 23, 24, 32, 55, 56
effect on convergence, 5–6, 8–9, 32–33, 64, 112–113, 199–200
Banca Commerciale Italiana (Comit), 52, 56–58, 423, 492, 597 n. 5
Banca d’Italia. See Bank of Italy
Banca Generale, 52, 56
Banca Nazionale nel Regno, 52, 489
Banca Romana, 15, 52, 489
Banco di Napoli, 63, 286 (p. 774)
banking system, 14, 19, 31, 35, 58, 114, 373, 485–486, 490, 501
banking crisis of 1931–1933, 19, 35, 58, 490
banking law of 1927, 584, 490
banking law of 1936, 59, 445 n. 6, 490, 491, 493
banking law of 1893, 15, 35, 52–53, 65, 489–490
banking reforms of 1931–1938, 490, 491
banking reforms of 1990–1993, 31, 492
banks of issue, 15, 51–52, 489
Country Study, effects of, 144
IRI takeover of banks, 19, 59, 490
regulation changes in 1960s and 1970s, 491
remittance transfers, 63, 285–286
special credit institutions, 445, 490, 491, 511, 513
universal banking model, 11, 19, 57, 65, 485–486, 489 See also allocation of resources by banks
Bank of Italy (Banca d’Italia), x, 15, 35, 52, 489–491
macroeconomic policy, 21, 430
repeal of agreement with the Treasury, 25–26, 90, 117
Bassanini, Franco, 565
Bastogi, Pietro, 476
Beneduce, Alberto, 479
Bocciardo, Arturo, 478
Bonnefon Craponne, Louis, 141–142, 153
Borbone, Carlo di, 138
Breda, Vincenzo Stefano, 55–56, 140, 476, 483 n. 10
Bretton Woods breakdown and aftermath, 24, 195, 362–363, 430
Brunetta, Renato, 566
Bureaucracy, political influence over, 546–548
capitalism
and administrative system, 534
fourth capitalism, 442, 448, 480–481
mid-sized firms, 88, 96, 102, 442, 448, 477, 480–481
managerial capitalism, 478
scarcity of capitals, 55
state intervention, 55, 56, 59, 305, 311, 476–477 See also entrepreneurship
Casati Act, 241, 251–254, 252, 253, 254, 266, 579
Cassa per il Mezzogiorno. See Southern Italy Development Fund
Cassese, Sabino, 565
catch-up growth. See convergence
Cavour (Camillo Benso, Count of Cavour), 38, 39, 40, 136, 139
census districts, 576, 597 n. 4
child labor, 7, 15, 17, 231–232, 246
child mortality, 15, 33, 237, 238, 239, 537
Chiovenda, Giuseppe, 559
civic capital, 303–308, 321–322
city–state evolution in North before 1861, 307–308, 320
civic capital, North–South differences in, 304, 305, 319–320
civicness, effect on voting, 311–312, 314–315
enfranchisement of 1912, 304–305 310
heterogeneity in enfranchisement rates, 315–317
hierarchical government in South before 1861, 306, 307, 320
mutual aid societies (voluntary associations), 308, 309, 314–315, 323 n. 2
preunification institutions and civic traditions, 306–308
private rent-seeking behavior, effect on voting, 305, 311
reallocation of power in democratization reform, 305–306, 318–319
role of institutions, 303–304
socialist and communist parties in North and South, 305, 318–319, 320
from unification to the enfranchisement of 1912, 309–311
voter participation, North-South differences in, 304–305, 310–311, 312–317, 319–321
willingness of nonelites to participate, 305–306, 318–319, 321
civicness. See civic capital
Civil Code of 1865, 13, 559
civil justice system, 550–559
Corte di Cassazione, 550, 556, 558
Civil Code of 1865, 559
Courts of Appeal, 550, 551, 554, 556, 558, 568 n. 6
geographic differences, 551–552, 553–554, 555, 558, 559, 567
judges, 557–558
length of proceedings, 539, 540, 550–551, 552
measures of output of civil justice system, 550–553
Preture, 550, 551, 553–554, 556, 558, 568 n. 6
Tribunali, 550, 551, 553–554, 556, 558, 568 n. 6
Uffici di conciliazione, 550, 551, 553, 556, 559, 568 n. 6 See also administrative system in Italy; litigation
Cobden, Richard, 136, 327
Cobden–Chevalier treaty, 10, 38, 40
Common Market. See European Common Market.
communes in the North, 307–308
comparative advantage, 71, 99, 115, 328, 338–339, 616, 629 n. 17 See also foreign trade
competition
in banking sector, 97, 446
comparative advantage, 71, 99, 115, 328, 338–339, 616, 629 n. 17
competitive impact of high wages in North, 600, 620–621, 625
effect of EMU membership, 100–101, 102 (p. 775)
effects on economic outcomes in Italy, Germany, and Japan, 114, 117, 120
ICT investment and competitiveness, 93, 96
international competition after 1861, 38, 42
international competition, 1947–1973, 20–21, 22, 77, 103, 114
international competition: emerging countries, 100, 103, 328, 456, 463, 466
innovation and international competitiveness, 86, 90
policy in 1990s, 96–97, 123
Congress of Vienna, 138, 308, 309
convergence, x–xi, 5–9, 16–26, 65–74, 103–106
corporate social contract and wage moderation, 79, 102, 114
effect of backwardness, 5–6, 8–9, 32–33, 64, 112–113, 199–200
end of catch-up growth, 92
in first age of globalization, 16–18
GDP growth rate by country, 1953–1973, 112, 113
GDP per person, levels and growth rates, 22, 71–72, 73, 75–76, 462
North–South convergence, 1951–1973, 246, 585–590, 625
North–South convergence, end of, 1974–1999, 590–594
productivity, 220–221
Coppino law, 252
Corbino, Epicarmo, 144
corruption, 538, 561–562
Corte di Cassazione, 550, 556, 558
Courts of Appeal, 550, 551, 554, 556, 558, 568 n. 6
credit allocation by banks. See allocation of resources by banks
Credito Italiano
formation, 52, 56, 68 n. 8, 497 n. 5
insolvency, 58
privatization, 492
rescue of Ilva steel trust, 57
Credito Mobiliare, 52, 56
Daneo–Credaro Act, 253, 579
debt. See public debt
deflation
in 2011, 120
after World War II, 144–145
and European Monetary Union membership, 100
in Great Depression, 57–58, 65
in Japan, 130
in 1920s, 53, 421, 477, 490
and return to gold standard, 57, 58
De Gasperi, Alcide, 78, 143–144, 360
Destra storica, 136, 150–151
Doing Business indicators, 104, 105
domestic market access, 602–603
during Golden Age, 79
effect of remittances, 615, 616–617
effect on industrial location, 600
from 1860 to 1890, 613–614
from 1890 to 1950, 615–621
Economic Freedom Index, 118
economic geography model, 605, 611–612, 624, 626, 627–628
“economic miracle.” See Golden Age (1950–1973)
education and literacy, 3–4, 12, 249–257
adult literacy vs. normalized GDP per capita, 243–244
avviamento al lavoro, 254
attainment of young adults, 260–261
Casati Act, 241, 251, 252, 253, 254, 266, 579
completion in Golden Age, 97
Coppino law, 252
Daneo-Credaro Act, 253, 579
and economic stagnation, 1990–2009, 268–270
emigrant literacy, by age and gender, 278–279
engineering, students enrolled in, 397, 398, 416 n. 11
enrollment rates vs. normalized GDP per capita, 244–245
Esame di Stato, 254, 257
expenditure and enrollment data since 1881, 257–258
Gentile reforms, 253, 254, 397, 398
ginnasi, in 1860, 251
Human Development index, 240–242, 243, 247 n. 4
illiteracy rates, 3, 241, 243–244, 259, 278
International Adult Literacy Survey, 264–265
international comparisons, 261–265, 269
istituti tecnici, 252, 254, 255, 399, 416 n. 13
students’ test performance at difference ages and times, 263, 264
licei, establishment, 251–254, 260
literacy rates, ages 15–19, 14, 21
and localized growth in early Italy, 266–267
migration effect on Italy’s education gap, 261
military education, 259
North-South gap, 574, 580–581, 586
Orlando law, 253
and the postwar boom, 267–268
primary education, 1860–1900, 13–14, 251–256
primary education, comparison to other countries, 251–252 (p. 776)
primary education, long–run dynamics, 257–259
primary education across regions, 1871 to present, 258–259
quality gap between Italy and other countries, 263–264, 269
quality of students’ competencies, by country, 263
scuola complementare, 254
scuola materna, 254
scuola media, 254, 255, 260
scuole commerciali, 253
scuole professionali, 252–253, 268, 269
scuole reggimentali, 259
scuole tecniche, 252–253
secondary education, 251–256, 259–260
teacher careers, organization since 1970, 256–257, 262
technical education, 252, 254, 255, 397–399, 411, 416 n. 13
tertiary education (universities), 1860–1900, 251, 253–255
years of schooling, international comparison, 21–22, 33, 76, 113, 240, 259–260–262, 265–266
Einaudi, Luigi, 62, 77, 143–144, 360
emigration. See migration
employment, See labor and employment
ENEL (Ente Nazionale per l’ Energia Elettrica), 440, 444
enfranchisement of 1912. See civic capital
ENI (Ente Nazionale Idrocarburi), 80, 146, 443–444, 624
entrepreneurship, 474, 476–481, 482
among emigrants, 261, 278
decrease in older people, 125, 133 nn. 21–22
fourth capitalism and mid-sized firms, 480–481
innovative medium-sized exporting firms, 410, 411, 414
political connections, 305, 311, 476–477
Esame di Stato examinations, 254, 257
Ethiopia, 59, 333, 337, 360, 478
European Common Market, 79, 102, 345, 622–623 See European Economic Community (EEC)
European Economic Community (EEC), xi, 70–71, 621, 623
European Monetary System (EMS)
crisis in 1992, 92, 363
establishment in 1979, 363, 446
euro introduction in 1999, 363, 446
Exchange Rate Mechanism, 363
Italian exit, 92, 100
Italian participation, 25, 89, 90, 102, 117, 363
European Monetary Union (EMU), 93, 100–101, 103, 117, 120
European Recovery Program (ERP). See Marshall Plan
exchange rate. See Real Exchange Rate
Falck, Giorgio Enrico, 477
Falck (steel industry), 16, 458
Fauser, 383, 424, 428
Ferdinand II (King of the Two Sicilies), 138
Fiat
domestic market in 1950s, 429
export business, 421–422, 477
Fiat 500 and 600, 23, 429–430
as “first mover”, 16, 458
foreign subsidiaries, 421–422, 448 n. 5
imitation of Ford manufacturing model, 478
Lingotto plant, 461, 478
production agreements with foreign companies, 421, 430–431, 441–442
Finmeccanica, 443
firm size, 467–474, 470–472, 473, 474
by country and sector, 2008, 467, 468, 468, 469
characteristics of exporting firms, 465–466
downsizing of large Italian companies, 30, 472–474, 475, 476
effect on growth, 456–457, 464–467, 481
effect on ICT diffusion, 95–96, 465
employees, 468–471
employment shift to medium- and small-scale firms in 1970s, 88, 119, 120, 468–470
export shares of low-, medium-, and high-technology goods, 336–337, 345, 346–347, 350 n. 5
fourth capitalism and mid-sized firms, 480–481
growth of medium-size multinational companies, 442–444, 446
impact on innovation and research, 464–465
number of workers per plant, by sector, 1911–2007
and organizational structure, 95–96, 465
and productivity, 466–467
small firms and the “Third Italy,” 152–153, 588, 594
value added per hour worked by firm size, 466–467
fiscal policy. See monetary and fiscal policy
flexible-specialization model, 86, 88
foreign direct investments (FDI), 16, 381, 383–384, 407–409, 437–440
as channel for technology transfer, 380, 395
cost-saving strategy, 418
effect of state-owned enterprises (SOEs), 445, 447
in 1890s, 16, 381 (p. 777)
foreign subsidiaries founded by Italian firms, 1900–1981, 420
horizontal FDIs, 418
impact on Italian innovation, 407–409, 413–414
Italian-owned manufacturing firms abroad, 1986–2009, 436–437
Italian shareholdings abroad in 2009, 437–438, 439, 440, 450 nn. 15–18
motivations, 418, 437
nonequity investments, 418, 437
as percentage of GDP, 2010, 437, 438, 463
as percentage of world total, 2010, 437, 438
overregulated economies and, 122
foreign technology transfer. See technology transfer
foreign trade, 327–329, 334–337, 345, 348–349
comparative advantage, 338–342
empire trade, 60, 61, 333, 337
exporting firms, 465–466
exports and economic growth, 328–329
export shares in GDP, by sector, 1862–1938, 616, 618–619
export shares of low-, medium-, and high-technology goods, 336–337, 345, 346–347, 350 n. 5
exports in GDP, 1948 to present, 621, 622
geographic reorientation of trade, 337–338, 342–345, 621, 623
Italian trade with Eastern Europe, 1990–2010, 121
low-technology and labor–intensive Italian exports, 99, 121, 463
machinery exports, 402–403, 416 n. 16
machinery imports, 382, 384, 393–395, 402–403, 412
macro-trends, 1862–2009, 330–338
manufactures as share of imports and exports, 1862–2009, 333, 334
manufacturing exports 1862–2009, 335–336, 342–345
openness ratios, 330, 331
revealed comparative advantage (RCA) index, 71, 99, 115, 328, 338–339, 616, 629 n. 17
share in world trade relative to share in world GDP, 331–332, 622
share of Italian exports since mid-1990s, 46
share of world trade relative to share of world income, 600, 622
shares in world trade, by country, 330–331, 332
shares of world output and world exports of manufactures, 71, 73
specialization, 348–349
technologic balance of payments (TBP), 396–397, 405–406, 412
technology exports, 345, 346–347
trade balance, 330, 331, 458, 617
trade war with France in 1880s, 14–15, 42, 193, 337, 343, 615
fourth capitalism and mid–sized firms, 480–481
Franco–Italian treaty, 63
Garibaldi expedition, 3, 309
Gentile, Giovanni, 63, 253, 254, 397–398
Germany, 39, 40
Gastarbeiterprogramm, 280
GDP growth, 1930s, 19–20
immigration of refugees after the war, 116
regional income differences, 125–127, 129
Soziale Marktwirtschaft, 21, 111
Gerschenkron, Alexander, 43, 55, 140, 142–143, 150–152, 169
Giannini, Massimo S., 563, 564
Giannini Plan, 564
Gini index of per capita income, 3, 4, 234–237
Giolitti, Giovanni, 16, 310, 526
Giolittian era (1900–1913)
exports, 328, 339, 348
foreign investment in Italy, 381, 383, 387, 395–396, 413
GDP growth rate, 26–27
income distribution, 236
industrial development, 168–169, 170
investments in plants and equipment, 171, 394, 412
liberal democracy, 18
patenting, 381, 386, 387, 389, 396, 412
productivity growth rate, 16, 193–194
“parallel administrations”, 562
technical human capital, 397, 409
undervaluation of Italian currency, 372
globalization, first, 38–40, 457–458
convergence of Italy, 16–18
globalization backlash, 18
and unification of Italy, 9–10, 38 See also industrial revolution
globalization, second (1990–2011), 26–36, 70–74
declining global share of Italian exports since mid–1990s, 463
divergence in, 26–36
gross domestic product (GDP) per person, 26, 94
ICT and high-technology industries, 463
competitive pressures from low–wage countries, 100, 103, 456, 463, 466
trade costs after World War II, 70–72
total factor productivity (TFP) slowdown, 27, 28 See also stagnation (mid-1990s to 2011); third industrial revolution
(p. 778)
Gobbato, Ugo, 478
Golden Age (1950–1973), 22–23, 75–82, 102, 461–462
education, 97, 267–268
exports and imports of manufacturers
foreign direct investments, 383–384
GDP growth rate by country, 1953–1973, 112, 113
GDP per person, 22, 71–72, 73, 75–76, 462
industry growth, 461–462
Italy, Germany, and Japan (IGJ) after World War II, 111–116
international capital mobility, 71, 72
macroeconomic program (programmazione), 78, 81–82
North-South regional convergence, 585–590
productivity growth, 22, 76, 195
reduced trade costs after World War II, 70–72
special development policy (l’intervento straordinario), 78–79, 82, 88, 91–92, 104
total factor productivity (TFP), 22, 76, 214
trade, 79, 71, 73
undervaluation of Italian currency, 361–362, 372
wage moderation, 79, 102, 114, 361 See also convergence
gold standard, 51–54, 58, 60, 359, 360
bimetallic system, 51, 359
convertibility of the lira, 14–15, 51, 359
deflation and return to gold standard, 57, 58, 360
governance, measures of good, 97, 98–99, 536–538
gross domestic product (GDP), 3–6, 8, 16, 24, 26, 83–84, 93, 94
distributionally adjusted GDP per capita, 236–237
effect of migration on North–South differential in GDP per capita, 578, 585
G10 in 1870 and 1998, shares in world GDP, 12
GDP growth rate by country, 1861–2007, 8, 216
GDP growth rate by country, 1953–1973, 112, 113
GDP per capita and per equivalent person, 1861–2011, 165–166, 229–231
GDP per capita gaps between regions, 7, 574, 576, 580, 582, 583, 585, 586
GDP per capita in selected countries, 1861–2011, 228, 229
GDP per hour worked, 1995–2007, 93, 94–95
Golden Age (1950–1973), 22, 71–72, 73, 75–76
Italy, Germany, and Japan, 1946–2011, 108, 109
school years of population vs. GDP per capita, 265–266 See also national accounts; productivity; standards of living; backwardness
growth
“big push,” 141–143, 150–152
See also gross domestic product (GDP), Golden Age (1950–1973), slowdown (1973–1992), stagnation (mid-1990s to 2011), productivity, backwardness
growth opportunities (GOs), 493–494, 496
and credit, 492–495
price/earnings (PE) ratios as proxy for, 486, 493–494, 496, 507
and realized growth, 496, 498, 501, 503–506, 507–508, 509 See also price/earnings (PE) ratios
growth theory
Keynesian growth model, 146, 521
neoclassical growth model, 211–217
Palmerton on industry–led development or balanced growth, 136–139
Smith on natural and unnatural development, 135–136
Gualino, Riccardo, 422, 477
Hamilton, Alexander, 136
Heckscher–Ohlin model of trade, 41, 45
Hirschman, Albert, 144
“hot autumn” (autunno caldo) of 1969
causes, 119, 362
changes in labor market regulation, 115
economic effects, 79, 82, 86, 418, 425, 450 n. 22, 592
political effects, 24
Human capital. See education; Giolittian Age
Human Development Index (HDI), 240–242, 243, 247 n. 4
hydroelectric power development, 18, 57, 59, 193, 458, 619
import. See foreign trade
income, 228–231
Atkinson index of per capita income, 234–236, 237
data problems, 234–235
distribution of income, 3, 4, 29, 233–237
Gini index of per capita income, 3, 4, 234–237
government debt and per capital income growth, 521–523, 530 nn. 9–11
and human development in the Mezzogiorno, 7, 595, 596
inequality, long–run dynamics of, 235–237
and Italian Household Budget Database, 234
income inequality
Atkinson index, 234–236, 237
Gini index, 3, 4, 234–237
long–run dynamics, 20, 25, 235–237, 246
(p. 779) and social welfare, 233–234 See also inequality
industrial districts, x, 22, 34, 77, 86, 96, 99, 121, 132 n. 19, 140, 152–153, 268, 410, 443, 448, 464, 480, 576, 594, 625
industrial policy, 18–19, 54–60
convergence, 64–67
flexible-specialization model, 86, 88
German developmental model, 39–40, 55, 56
hydroelectric power, 57, 59, 193, 458, 619
industrial districts, 152–153, 480
iron and steel tariffs, 41, 43, 49
legacy after World War II, 60, 62
machinery industry, 402–404
protectionism, 18–19, 41, 46
small-scale firms, 152–153, 588, 594
steel industry, 55–56, 57
industrial revolution, 17, 187, 266, 267, 457–458
composition and size of firms, 470–472, 473, 474, 475
industries, 455
leading regions in Italy, 266–267
inequality
caloric intake vs. other countries in 1861, 3
distributionally adjusted GDP per capita, 236–237
dynamics of equality vs. GDP per capita, 244, 245
effect of educational policies, 250
income inequality, Atkinson index, 233, 234–236
income inequality, Gini index, 3, 4, 234–237
income inequality, long-run dynamics of, 20, 25, 235–237, 246
income inequality and social welfare, 233–234
regional inequality in GDP per capita, by country, 573, 580, 595 See also North-South gap; regional differences in geography and trade
infant mortality, 15, 33, 237, 238, 239, 537
information and communications technologies (ICT), 32, 34 74, 92–93, 95–96
firm size, effect on ICT diffusion, 95–96, 465
human capital, effect on ICT diffusion, 32–33, 34, 93, 465
and investment in intangible capital, 95–96
labor productivity in US services, 207, 220, 462
regulation, effect on ICT diffusion, 32, 34, 93, 95
infrastructure. See investment; railways.
innovation, 378–393
designs and models, 391–392
determinants of Italian technologic innovation, 407–411
engineering industry, 382
firm size, 464–465
impact of foreign technology on innovation, 407–411, 413
human capital, 33, 34, 76, 99, 397–399, 416 n. 11
machinery industry, 402–404
national absorptive capacity, 397, 399, 408–409, 412–413, 414
national innovative capacity, 391, 404, 406
research and development (R&D), 76, 378, 384, 396–397, 399–401, 406
state-owned enterprises (SOEs), 401
Institute for Industrial Reconstruction (IRI), 19, 21, 22, 31, 60, 62, 110, 479, 490
banking and industrial system bailout, 584
Economic Recovery Administration and postwar reconstruction, 145–146
industrial policy, 64, 78
managerial capitalism, 479
takeover of banks, 19, 59, 490
takeover of industries, 19, 60, 479, 490
International Adult Literacy Survey, 264–265
International Committee of the Red Cross, 38–39
International Postal Congress, Paris, 1863, 38
international monetary system, 51–54, 71–72, 77, 143, 147
investment, 164–165
infrastructure and public works investment, 539
in intangible capital and ICT, 95–96
in plant, machinery, and transport equipment, 1911–1951, 172–173, 174
in plant and equipment, 1861–1911, 171 See also railways
(p. 780) istituti tecnici, 252, 254, 255, 399, 416 n. 13
Istituto di Ricostruzione Industriale (IRI). See Institute for Industrial Reconstruction (IRI)
Istituto Mobiliare Italiano, 490
“Italy and the World Economy, 1861–2011” project, x
Japan, 116, 121
bursting of Japanese bubble, 119, 120, 124
catch-up growth, 26–27, 71
fiscal stabilization plan in 1949, 110
high-tech activities, 115
regional income differences, 125–127
zaibatsu dissolution, 110
Keynesian growth model, 146, 521
Kingdom of Italy, 3, 11, 12, 38–40, 309
conversion to single currency after 1861, 13, 613
democratization, 309–311
Destra storica, 136, 150–151
education, 251–253
market unification, 12, 13, 14, 35, 546
pre-unification institutions and civic traditions, 306–308
railroads, 13
state budget, 525–526, 527
labor and employment
child labor, 7, 15, 17, 231–232, 246
employment and firm size, 470–472
employment protection, 84, 85, 93
employment shares by region and industry sector, 604–605, 606–607, 628 n. 6
“hot autumn” and changes in labor market regulation, 115
agriculture, movement out of, 76, 79, 189–190
employment by country and sector, 6, 189–190, 200, 201–202, 203–204, 459–460
unemployment rates, 587–588, 591, 592
labor productivity. See productivity
Latin Monetary Union, 51, 359
Law 4/68 (self–certification enforcement), 565
Law 29/93 (rules for public employees), 565
Law 142/90 (local administrations), 564–565
Law 142/90 (local autonomy), 565
Law 241/90 (administrative procedures), 565
Law 634/1957 (Southern Italy Development Fund), 589
Law 646/1950 (Southern Italy Development Fund), 589
licei, 251–254, 260
life expectancy, 3,4,7,15,33,227,237, 243–244
North–South gap, 7, 572, 580
in selected countries, 238 See also standards of living
List, Friederich, 136
literacy. See education
litigation, 554, 555, 553–555
costs, 556
geographic differences, 553–554
incoming cases, 553
number of lawyers, 555
quality of judgement, 556
rates in appeal, 556, 557 See also civil justice system
Lutz, Friederich, 142, 147
Lutz, Vera, 140, 143, 147–150
map: diffusion of mutual aid societies, 309
map: Italy, 1848, xii
map: Italy, present day, xiii
markets
under autarky, 461
capital market, 56
foreign market access, 1950 to present, 621–626
liberal market economies in 1950s and 1960s, 74
market seeking strategy, 418, 437
market unification after 1861, 12, 13, 14, 35, 546
Marshall Plan 21, 78, 383–384
economic effects, 20, 77, 484 n. 17, 584
Italy Country Study (Economic Recovery Administration), 143–147
technology transfer, 383, 394–396 See also postwar settlement
mass production
and autarky, 461
in 1950s and 1960s, 384
and labor productivity, 207, 210
motor vehicles, 501
second industrial revolution, 456
steel, 16, 458, 461
Menichella, Donato, 78, 144, 148
migration, 271–274, 282–290, 298–299
anti-immigrant attitudes in United States
attitudes to immigration, 271, 277, 280, 284, 290–291, 293, 294–295, 297–298
characteristics of emigrants, 274–280
determinants of emigration, 281–282, 283, 300 nn. 9–11
economic impact, 5, 62, 64, 286–290, 291, 578, 585
emigration by main destination, 271–272, 274, 280, 577
emigration rates, 272, 274
illegal immigration and crime, 297–298
immigration into Italy, 261, 290–296
internal migration from South to North, 127–128, 261, 361, 625
migration policies, 62–64
North-South differential in GDP per capita, 578, 585
(p. 781) policy in Ireland, 64
return migration, 272, 275–276, 280, 284, 300 nn. 4–5, 577
seasonal migrants, 275, 276, 285
skill premia, Italy vs. United States, 279
welfare shopping and welfare tourism, 297 See also remittances
miracolo economico. See Golden Age (1950–1973)
monetary and fiscal policy, 13, 15, 52, 56, 65, 89–92, 117–119, 130, 613
Bretton Woods international monetary system, 71–72, 77, 143, 147
Bretton Woods system breakdown and aftermath, 24, 195, 362–363, 430
convertibility of the lira, 14, 359, 360
currency misalignments, 352, 356, 357, 359
financial crisis of 1907, 52–53, 57
government bonds (rendita), 52–53, 54
Great Depression, 58–60
lira devaluation in 1992, 93, 594
lira revaluation under Mussolini, 54
macroeconomic program (programmazione) in 1960s, 78, 81–82
participation in European Monetary Union (EMU), 100–101
public debt, 524–525, 528
response to Great Depression, 58–60 See also public debt
Montecatini, 422–425, 427–429, 383, 461, 478
chemical products, 383, 424, 427–428
fertilizers, 424, 461, 478
foreign subsidiaries, 423–424, 428
joint venture in the chemical industry, 383
research, 383
Montedison, 427, 429, 435, 436
multinational firms, 417–418, 420, 424–434, 436, 440, 442–444, 446, 447–448
Italian-owned manufacturing firms abroad, 1986–2009, 436–440
interwar period, 421–424
seeking strategies, 418, 437
from 1880 to 1914, 418–421
from 1945 to 1969, 424–430
from 1970 to 1992, 430–436
from 1993 to 2011, 436–444, 450 nn. 15–18
nonequity investments, 418, 437 See also foreign direct investments (FDI);
Mussolini, Benito
monetary policies, 54, 360, 423, 617
economic policies, 18–20, 58–59, 360, 477
emigration policies, 63–64
mutual aid societies (voluntary associations), 308, 309, 314–315, 323 n. 2
Napoleon III, 51, 140, 309
national accounts, 157–160, 165–167, 172–175
accumulation rate (investment/GDP ratio), 1861–2010, 167, 168
deflator estimates, 165
demand-side estimates, 162–165, 181–183
interpolating algorithm, 178–179
investment, 164–165, 171–174
Italy’s total economy performance, 1992–2010, 217–219
GDP per capita, constant prices, 1861–2010, 165, 166GDP levels, market prices, 1911–1951, 172, 173
methodology, international labor productivity comparisons, 221–223
methodology, national accounts reconstruction, 158, 160–165, 175–176, 176–184
methodology, supply side (1861–1970), 176–178
private consumption, 1861–2010, 166–167, 168, 170–173
sectoral analysis, 1861–2010, 165–167, 219–221
sector classifications, 161–162, 163
TFP effect on aggregate growth: growth accounting approach, 211–217 See also gross domestic product (GDP) per person
Natta, Giulio, 427–428
neoclassical growth model, 211–217
Nitti, Francesco Saverio, 142, 479, 580, 584
North-South gap, 147–150, 511, 572, 574–575, 581, 582, 584
agricultural productivity slump in South, 1861–1913, 576–577
banking law of 1926, 584
Cassa per il Mezzogiorno, 78–79, 91, 148, 543, 588
city-state evolution in North before 1861, 307–308, 320
civic capital, 304, 319–320
civil justice, geographic differences, 551–552, 553–554, 555, 558, 559, 567
convergence, 1951–1973, 127–128, 246, 585–590, 625, 590–594
crime rates, 1861–1913, 574–575
Doing Business indicators, 104, 105
education and literacy, 7, 574, 580–581, 586
emigration, 7, 272–273, 577–578, 585, 583
Fascist economic policy impact on South, 583–584
fertility decline and demographic dynamics, 584–585
GDP per capita gaps between regions, 574, 576, 580, 582, 585, 586
government policy, 1861–1913, 578–580
government policy, 1951–1973, 588–590, 595–597, 624
government in South before 1861, 306, 307, 320
income and human development in the Mezzogiorno, 7, 595, 596
industrial geography, 8, 575–576, 588
(p. 782) industrial growth rates, 1861–1913, 575–576
internal migration from South to North, 127–128, 261, 361, 625
international comparison, 572, 573
Law 634/1957, 589
Law 646/1950, 589
life expectancy, 7, 572, 580
macroeconomic program (programmazione), 78, 81–82
population disparities, 572, 573, 582, 594–595
productivity trends, 1951–1973, 585–586, 587
productivity trends, after 1973, 587, 591–593, 594–595
public services, quantity and quality of, 596–597
regional income differences, 125–129, 601–602, 626–627
sectoral industrial clusters, 576, 584, 588, 600, 618–619
socialist and communist parties in North and South, 305, 318–319, 320
special development policy (l’intervento straordinario), 78–79, 82, 88, 91–92, 104
state-owned enterprises’ investment in the South, 589, 592, 596, 624
transport, 1890–1950, 6, 13, 579, 613, 617–618, 621–622
unemployment rates, 587–588, 591, 592
Vanoni Plan, 148
voter participation, differences in, 304–305, 310–311, 312–317, 319–321
water resources in North, 572, 600, 612–615, 619
welfare indicators, 1861–1913, 572, 574, 580 See also regional differences in geography and trade, convergence
oil shock of 1973, 25, 418, 427, 431
oil shock of 1979, 90, 119, 446
Olivetti, 422, 426, 433–435
electronic components, 427, 449 nn. 7–8, 463, 480
export business, 425
internationalization, 425–427, 449 n. 7
Orlando law, 253
overvaluation of currency. See real exchange rates (RER)
Palmerston (Henry John Temple, Viscount Palmerston), 137–138, 140
Pasinetti, Luigi, 149
patents and patenting, 76, 385–389, 412
foreigners’ patents in Italy, 395–396
in Giolittian era (1900–1913), 381, 386, 387, 389, 396, 412
index of revealed technologic advantage, 389, 390
Italian residents’ patents granted abroad, 386, 389, 390, 391 See also innovation
Piombino, 16, 458
Pirelli, Alberto and Piero, 477
Pirelli, 16, 432, 433, 440, 441, 458, 477
export business, 448 nn. 2–3
foreign subsidiaries, 419, 477
research, 383
products, 419, 448 n. 2
politics
and administrative corruption, 561–562
distributional coalitions, 24, 35, 103, 110, 123
and entrepreneurship, 305, 311, 476–477
post-oil shock period. See growth slowdown (1973–1992)
postwar settlement, 20, 77–78, 80, 82, 102 See also Golden Age (1950–1973); Marshall Plan
poverty, 3, 4 See also standards of living
Preture, 550, 551, 553–554, 556, 558, 568 n. 6
price/earnings (PE) ratios, 486–487, 493, 494, 496, 499–501, 507–512, 513
and allocation of resources by banks, 486
cointegration between credit and PE ratio, 486–487, 508–512, 513
productivity, 187–189, 217–221
convergence, 24, 26, 34, 84, 195, 220–221
firm size, 466–467
growth, 1911–1938, 194
growth, 1938–1951, 194
growth, mid-1990s to 2011, 26, 27–28, 92–93, 195–196
growth in Giolittian era (1901–1911), 16, 193–194
growth in Golden Age, 22, 76, 194–195
labor productivity growth and currency value, 191, 192, 356–357, 361–362, 363
labor productivity levels by country, 1870–2007, 207–210
labor productivity, international comparisons, 221–223
labor productivity, methodology, 211–213
sectoral labor productivity growth, Italy, 1861–2010, 190–197
sectoral labor productivity growth by country, 1870–2007, 204–207
shift-share analysis of labor productivity growth rates, 1861–2010, 197–199
South, 1951–1973, 585–586, 587, 591–593
TFP and capital deepening, contribution to labor productivity dynamics, 214–215 (p. 783) See also gross domestic product (GDP) per person; total factor productivity (TFP)
protectionism, 10, 14, 18–20, 57, 136–141, 152, 328, 461, 581, 583, 600, 615 See also autarky; tariffs; trade policies
public debt, 30, 74, 88–89, 516–519, 524, 529
after unification, 30, 52, 579
budget deficits, 26, 88–89, 527–529
composition of debt, 518–519
growth and debt, 516–517, 519–528, 530 nn. 9–11
debt accumulation/reduction, 1880–1913 vs. 1985–2007, 516, 524–528
debt-to-GDP ratio, 17, 26, 30, 88, 91, 93, 246, 360
in 1870s and 1880s, 52–53
fiscal policy and, 524–525, 528
government bonds (rendita), 52–53, 54
government expenditure and revenue, 524–526, 527
Gran libro del debito pubblico, 517, 530 n. 2
inflation and debt after World War II, 21
literature on debt-GDP growth link, 30, 91, 520 519–521, 524–528
monetization of debt in 1970s, 25
Mussolini government, 18, 54
threshold of 90% debt–to GDP, 29, 91, 520
transmission channels from debt to growth, 91, 520, 523
Putnam, Robert, 139, 153, 304–305, 307–308, 319, 321
railways
construction, 6, 13, 193, 476, 589, 598 n. 9, 618
foreign investments, 381, 458
and human capital, 548
and international trade, 617, 621
and public administration, 539, 542
and protectionism, 40
and growth, 151, 382, 443, 574, 579, 613
real exchange rate (RER), 351–353, 359–365
bilateral misalignment measurement, 352, 354–355, 366, 376 n. 25
correction for Balassa-Samuelson effect, 351–352, 353–354
currency misalignment, 352, 356, 361–362, 363
undervaluation, determinants of, 356–359, 352, 356, 357, 359
fiscal policy and undervaluation, 352, 356, 357, 359
implications for economic growth, 353
labor productivity growth and currency value, 356–357, 361–362, 363
overvaluation of Italian currency, 352–353, 363, 373
lira revaluation under Mussolini, 54
trade-weighted undervaluation, 353, 354–355, 357, 359, 361, 363
undervaluation, effect of labor supply
undervaluation and economic growth, 352, 363–365
undervaluation and export, 352–353, 366–368, 369, 370–373
undervaluation measurement, 352
regional differences in geography and trade, 599–601, 626–627
economic structure, 604–605
elasticity of employment share with respect to distance from Milano, 604–605, 608–610, 614, 618, 624, 625
employment shares by region and industry sector, 604–605, 606–607, 628 n. 6
external trade costs, 611
foreign market access, 1950 to present, 621–626
geography model, 605, 611–612, 624, 626, 627–628
income differences, 125–129, 601–602, 626–627
industrial geography, 8, 575–576, 588
natural advantage in North, 600, 612–615, 619
population and income shares, 601–602
sectoral industrial clusters, 576, 584, 588, 600, 618–619
specialization, 623, 624, 625
transport, 1890–1950, 6, 13, 579, 613, 617–618, 621–622
urban population, balance and changes, 603–604
value-added per capita, by region, 602
wages in North, 600, 620–621, 625
water resources in North, 572, 600, 612–615, 619 See also domestic market access; foreign trade; North–South gap.
remittances, 60, 284–286
economic impact, 142, 286, 288, 289–290, 600, 615–617
and exchange rates, 17, 358, 617
and repatriation rates, 577
share of GDP, 285, 286, 600, 617, 622
and trade balance, 458, 617
transfers in banking system, 63, 285–286
Rendita (government bonds), 52–53, 54
Ricardo, David, 136
Risorgimento, 10, 16, 139, 308–309
Romeo, Rosario, 140, 142–143, 150–152
scuola complementare, 254
scuola materna, 254
scuola media, 254, 255, 256, 260
scuole commerciali, 253
scuole professionali, 252–253, 268, 269
scuole reggimentali, 259
scuole tecniche, 252–253
second globalization. See globalization, second (1990–2011)
(p. 784) second industrial revolution, 11, 16, 456, 458
composition and size of firms, 470–473, 474, 475
foreign subsidiaries of Italian firms, 419
industries, 456
Italian industry, 1880 to 1914, 458
Italian industry, 1960s, 461–462 See also third industrial revolution
services
“Charter for Public Services” (Cassese), 565
credit, 495–498
employment, 6, 29, 189–190
growth, 84–85, 188
labor productivity, 16, 28, 190–197, 204–207
labor productivity, international comparison, 207–210
liberalization, 97, 225 n. 16
national accounts, methodology, 175, 177, 178, 183, 185
opening trade, 29
price/earnings ratio, 499–502
public services, 23, 104, 526, 535, 541–544, 596–597
regulation, 1975, 1990, 86
structural change, 74, 84, 197–204
transportation and communication advances, 455–456
transport, 1890–1950, 6, 13, 579, 613, 617–618, 621–622
value added, 10, 166, 167 See also banking system
silk industry
effect of water resources, 613, 614
exports 1861–1914, 327, 341, 373, 377 n. 41, 457, 600, 614
production in North, 457, 600, 614
silk reeling, 382, 614
SITC classification, 350 n. 3
Silver Age. See slowdown (1973–1992)
Sinigaglia, Oscar, 57, 479, 484 n. 17
slowdown (1973–1992), 23–26, 82–92, 102, 462, 463
employment protection, 84, 85
female employment levels and, 84
flexible-specialization model, 86, 88
GDP per person, 24, 83–84
industry growth, 88, 119, 120, 462, 463, 468–470
macroeconomic policies, 89–92, 117–119, 130
and North-South regional convergence, 590–594
productivity convergence, 24, 26, 36, 84, 195
product-market regulation, 84, 85, 86
and retirement of men, 84
service sector growth, 84–85
social transfers, 87, 88–89, 117
taxation, 84, 87, 89
total factor productivity (TFP), 83–85, 214–215
and undervaluation of Italian currency, 372
Smith, Adam, 135, 136
Smith, Penelope, 138
SNIA (Società di Navigazione Italo–Americana), 422, 423, 427
international success
foreign subsidiaries, 422–423, 427
laboratories and research, 383
textile business, 422–423, 427, 449 n. 6, 461
social welfare, 116, 233, 236, 535
Società Strade Ferrate Meridionali, 476
Sombart, Werner, 139–140
Spaventa, Luigi, 149, 153
special credit institutions, 445, 490, 491, 511, 513
specialization
causes of changes in specialization, 348–349
flexible-specialization model, 86, 88
stagflation in 1970s, 72, 74
stagnation (mid–1990s to 2011), 92, 121–123
educational quality, 97, 99
exports, 99, 121, 463
GDP per person, 1995–2007, 93, 94
ICT, 92–93
industry growth, 92, 463–464
competitive pressures from low-wage countries, 100, 103, 456, 463, 466
and investment in intangible capital, 95–96
Italy, Germany, and Japan, 120–125
and overvaluation of Italian currency, 373
productivity, 26, 27–28, 92–93, 195–196
social mobility, 125
standards of living, 4–5, 15–16, 23, 227–228, 243–247
child labor, 7, 15, 17, 231–232, 246
convergence, 239, 242, 245
GDP-augmented measures, 239–240, 243
height of recruits, 3, 7, 15, 239, 279
hours worked per person, 20, 27, 231, 232–233
income, 228–231
state-owned enterprises (SOEs), 80, 104, 114, 594
foreign direct investments, 445, 447
investment in the South, 589, 592, 596, 624
research and development (R&D), 401, 416 n. 15, 463 See also Institute for Industrial Reconstruction (IRI)
Stringher, Bonaldo, 53, 57, 360
sulphur mining and trade, 136–137
(p. 785) tariffs, 10, 41–51, 615
agricultural tariffs in Europe, 45–46
agricultural tariffs in Italy, 42–43, 68 n. 2
engineering industries protection, 616
impact of Italian tariffs, 43–51, 68 n. 5, 615–616
iron and steel tariffs, 41, 43, 49, 616
manufacturing tariffs in Europe through 1913, 41, 46
and market access, 615–616, 622
“most-favored nation clause” impact, 17, 40
revenue (exotic) tariffs in Europe, 46–47, 48
tariff levels, by sector, 1897–1911, 49, 50
tariff of 1878, 40–41
tariff of 1887, 14, 41–42, 615
textile tariffs, 1890, 615–616
trade war with France in 1880s, 14–15, 42, 193, 337, 343, 615
wheat prices and, 47–48 See also foreign trade; protectionism; trade policies
taxation
after unification, 12, 140, 532 n.21
distortionary, 84, 87, 89
and North-South gap, 128, 579
and private sector, 526, 527
and public spending, 30, 59, 520 See also monetary and fiscal policy; public debt
Technical Assistance and Productivity Program, 384 See also European Recovery Program (ERP)
technology transfer, 5, 16, 380–384
exports of disembodied technology, 405–406
foreign disembodied technology purchases, 396–397, 405–406, 412
and growth in backward countries, 32, 64
machinery imports, 382, 384, 393–395, 402–403, 412
technologic balance of payments (TBP), 396–397, 405–406, 412, 463 See also foreign direct investments (FDI); innovation
Telecom Italia, 435, 440, 441, 444
Terni (steel industry), 16, 56, 458, 476, 478, 483 n. 10
third industrial revolution (technologic revolution), 456
Toeplitz, Giuseppe, 58
total factor productivity (TFP), 10, 213–215, 225 n. 19
labor productivity dynamics, 214–215
effect of market regulation, 84–85
growth accounting approach, 211–217
in Golden Age, 22, 76, 214
international perspective, 215–217, 225 n. 21
residual approach to TFP measurement, 211
slowdown from 1970s to 1990s, 83–85, 214–215
slowdown, 1990–2011, 27, 28, 217–219
structural change effect on labor productivity, 76 See also productivity
Toynbee, Arnold, 147
trademarks, 392–393
trade policies, 41–51, 70–73, 79, 458, 577, 600, 615
capital mobility after World War II, 71, 72
Cobden-Chevalier treaty, 10, 38, 40
“European network of treaties” in 1860s, 40
free trade in 1850s, 9–10, 40, 41, 136–139
GDP per capita, 22, 71–72, 73, 75–76
Heckscher-Ohlin model, 41, 45
“most-favored nation clause” impact, 17, 40
protection in Italy, late nineteenth century, 41–51, 458, 600, 615
trade treaty with France, 1863, 40
trade war with France in 1880s, 14–15, 42, 193, 337, 343, 615 See also foreign trade; protectionism; real exchange rates (RER); tariffs
Tribunali, 550, 551, 553–554, 556, 558, 568 n. 6
Uffici di conciliazione, 550, 551, 553, 556, 559, 568 n. 6
undervaluation of currency. See real exchange rates (RER)
Vanoni Plan, 148
Villafranca armistice, 10
voter participation. See civic capital
welfare, 116, 233, 236, 535
pension, 526, 543
welfare shopping and welfare tourism, 297 See also education