Falling disparities and persisting dualism: Regional development and industrialisation in Italy, 1891–2001

The particular development of the Italian regional disparities and North–South inequality is correlated with the structural change which came about during the process of industrialisation. This process began in certain Northern poles producing a sudden increase in regional inequality, but, as it later spread through the North and Centre, a fall in regional disparities resulted. Industrialisation only superficially interested the South, which remained relatively backward. While regional convergence occurred both within the North and the South, divergence between North and South persisted. After presenting series of both labour force in industry and regional GDP, we analyse the relationship between industrialisation and inequalities and, finally, quantify the importance of the North–South dualism within the context of the Italian regional disparities. KEY Classification-JEL: D310. R100