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A Sectoral Analysis of Italy's Development, 1861-2011

Author

Listed:
  • Stephen Broadberry

    (London School of Economics)

  • Claire Giordano

    (Banca d’Italia, Structural Economic Analysis Department)

  • Francesco Zollino

    (Banca d’Italia, Economic Outlook and Monetary Policy Department)

Abstract

Italy’s economic growth over its 150 years of unified history did not occur at a steady pace nor was it balanced across sectors. Relying on an entirely new input (labour and capital) database by us built and presented in the Appendix, together with new Banca d’Italia estimates of GDP by sector, this paper evaluates the different labour productivity growth trends within the Italian economy’s sectors, as well as the contribution of structural change to productivity growth. Italy’s performance is then set in an international context: a comparison of sectoral labour productivity growth rates and levels within a selected sample of countries (UK, US, Germany, Japan, India) allows us to better time, quantify and gauge the causes of Italy’s catching-up process and subsequent more recent slowdown. Finally, the paper analyses the proximate sources of Italy’s growth, relative to the other countries, in a standard growth accounting framework, in an attempt also to disentangle the contribution of both total factor productivity growth and capital deepening to the country’s labour productivity dynamics.

Suggested Citation

  • Stephen Broadberry & Claire Giordano & Francesco Zollino, 2011. "A Sectoral Analysis of Italy's Development, 1861-2011," Quaderni di storia economica (Economic History Working Papers) 20, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:workqs:qse_20
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Giuseppe Albanese & Guido de Blasio, 2016. "Civic Capital and Development: Italy, 1951-2001," Politica economica, Società editrice il Mulino, issue 1, pages 47-64.
    2. Makiko Hino & Mototsugu Fukushige, 2014. "Catching up and falling behind in technological progress: the experience of the textile and chemical industries in Italy between 1904 and 1937," Discussion Papers in Economics and Business 14-14, Osaka University, Graduate School of Economics.
    3. Giordano, Claire & Giugliano, Ferdinando, 2015. "A tale of two Fascisms: Labour productivity growth and competition policy in Italy, 1911–1951," Explorations in Economic History, Elsevier, vol. 55(C), pages 25-38.
    4. Nicholas Crafts & Marco Magnani, 2011. "The Golden Age and the Second Globalization in Italy," Quaderni di storia economica (Economic History Working Papers) 17, Bank of Italy, Economic Research and International Relations Area.
    5. Barbara Pistoresi, 2013. "Italy's current account sustainability:a long run perspective, 1861-2000," Center for Economic Research (RECent) 092, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    6. Felice, Emanuele & Vecchi, Giovanni, 2015. "Italy’s Modern Economic Growth, 1861–2011," Enterprise & Society, Cambridge University Press, vol. 16(2), pages 225-248, June.
    7. Barbara Pistoresi & Alberto Rinaldi, 2013. "External constraint and economic growth in Italy: 1861-2000," Department of Economics (DEMB) 0011, University of Modena and Reggio Emilia, Department of Economics "Marco Biagi".
    8. Giovanni Iuzzolino & Guido Pellegrini & Gianfranco Viesti, 2011. "Convergence among Italian Regions, 1861-2011," Quaderni di storia economica (Economic History Working Papers) 22, Bank of Italy, Economic Research and International Relations Area.
    9. Baffigi, Alberto & Bontempi, Maria Elena & Felice, Emanuele & Golinelli, Roberto, 2015. "The changing relationship between inflation and the economic cycle in Italy: 1861–2012," Explorations in Economic History, Elsevier, vol. 56(C), pages 53-70.
    10. Antonelli, Cristiano & Amidei, Federico Barbiellini & Fassio, Claudio, 2014. "The mechanisms of knowledge governance: State owned enterprises and Italian economic growth, 1950–1994," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 43-63.
    11. Alberto Rinaldi & Barbara Pistoresi, 2014. "A note on Italy's current account sustainability: 1861-2010," Economics Bulletin, AccessEcon, vol. 34(2), pages 1197-1204.
    12. Claire Giordano & Francesco Zollino, 2015. "A Historical Reconstruction of Capital and Labour in Italy, 1861-2013," Rivista di storia economica, Società editrice il Mulino, issue 2, pages 155-224.
    13. Mariateresa Ciommi & Andrea Gentili & Barbara Ermini & Chiara Gigliarano & Francesco M. Chelli & Mauro Gallegati, 2017. "Have Your Cake and Eat it Too: The Well-Being of the Italians (1861–2011)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 473-509, November.
    14. Magda Bianco & Giulio Napolitano, 2011. "The Italian Administrative System: Why a Source of Competitive Disadvantage?," Quaderni di storia economica (Economic History Working Papers) 24, Bank of Italy, Economic Research and International Relations Area.
    15. A. Arrighetti & F. Landini, 2018. "Eterogeneità delle imprese e stagnazione del capitalismo italiano," Economics Department Working Papers 2018-EP01, Department of Economics, Parma University (Italy).
    16. Fabio Clementi & Marco Gallegati & Mauro Gallegati, 2015. "Growth and Cycles of the Italian Economy Since 1861: The New Evidence," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 1(1), pages 25-59, March.

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    More about this item

    Keywords

    Labour productivity; sectoral disaggregation; international comparison; growth accounting;
    All these keywords.

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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