IDEAS home Printed from https://ideas.repec.org/p/cge/wacage/667.html
   My bibliography  Save this paper

Italy in the great divergence: what can we learn from Engel’s law?

Author

Listed:
  • Chilosi, David

    (Department of Political Economy, King’s College London)

  • Ciccarelli, Carlo

    (Department of Economics and Finance, University of Roma Tor Vergata)

Abstract

We estimate and internationally compare the evolution of GDP pc in central-northern and, for the first time, southern Italy in 1400-1861. To address concerns on the representativeness of daily wages, we rely on an unconventional demand approach, using a general equilibrium model and occupational data. Our estimates are consistent with an industrious revolution in the long 18th century (1650-1800). Central-northern Italy stagnated. Southern Italy, though poorer, was growing slowly. Our comparison suggests that the great divergence between Europe and Asia in the 18th century was rooted in contingent institutional developments, rather than persistent differences.

Suggested Citation

  • Chilosi, David & Ciccarelli, Carlo, 2023. "Italy in the great divergence: what can we learn from Engel’s law?," CAGE Online Working Paper Series 667, Competitive Advantage in the Global Economy (CAGE).
    • Handle: RePEc:cge:wacage:667
    as

    Download full text from publisher

    File URL: https://warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/wp667.2023.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Chilosi & Carlo Ciccarelli, 2022. "Evolving gaps: Occupational structure in southern and northern Italy, 1400–1861," Economic History Review, Economic History Society, vol. 75(4), pages 1349-1378, November.
    2. Yongqin Guo & Zipeng Zhang & Bas van Leeuwen & Yi Xu, 2019. "A View of the Occupational Structure in Imperial and Republican China (1640–1952)," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 59(2), pages 134-158, July.
    3. Broadberry, Stephen & Guan, Hanhui & Li, David Daokui, 2018. "China, Europe, and the Great Divergence: A Study in Historical National Accounting, 980–1850," The Journal of Economic History, Cambridge University Press, vol. 78(4), pages 955-1000, December.
    4. Rota, Mauro & Weisdorf, Jacob, 2020. "Italy and the Little Divergence in Wages and Prices: New Data, New Results," The Journal of Economic History, Cambridge University Press, vol. 80(4), pages 931-960, December.
    5. Federico, Giovanni & Nuvolari, Alessandro & Vasta, Michelangelo, 2019. "The Origins of the Italian Regional Divide: Evidence from Real Wages, 1861–1913," The Journal of Economic History, Cambridge University Press, vol. 79(1), pages 63-98, March.
    6. Crafts, N F R, 1984. "Patterns of Development in Nineteenth Century Europe," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 438-458, November.
    7. Giovanni Federico, 2007. "Ma l'agricoltura meridionale era davvero arretrata?," Rivista di Politica Economica, SIPI Spa, vol. 97(2), pages 317-340, March-Apr.
    8. Palma, Nuno & Reis, Jaime, 2019. "From Convergence to Divergence: Portuguese Economic Growth, 1527–1850," The Journal of Economic History, Cambridge University Press, vol. 79(2), pages 477-506, June.
    9. Stephen Broadberry & Hanhui Guan, 2022. "Regional Variation of GDP per head within China, 1080-1850: Implications for the Great Divergence Debate," Oxford Economic and Social History Working Papers _196, University of Oxford, Department of Economics.
    10. Giovanni Federico & Antonio Tena-Junguito, 2014. "The ripples of the industrial revolution: exports, economic growth, and regional integration in Italy in the early nineteenth century," European Review of Economic History, European Historical Economics Society, vol. 18(3), pages 349-369.
    11. Emanuele Felice, 2019. "The roots of a dual equilibrium: GDP, productivity, and structural change in the Italian regions in the long run (1871–2011)," European Review of Economic History, European Historical Economics Society, vol. 23(4), pages 499-528.
    12. Van Zanden, Jan Luiten, 2002. "Taking the measure of the early modern economy: Historical national accounts for Holland in 1510/14," European Review of Economic History, Cambridge University Press, vol. 6(2), pages 131-163, August.
    13. Allen, Robert C., 2000. "Economic structure and agricultural productivity in Europe, 1300–1800," European Review of Economic History, Cambridge University Press, vol. 4(1), pages 1-25, April.
    14. Clark, Gregory & Cummins, Joseph & Smith, Brock, 2012. "Malthus, Wages, and Preindustrial Growth," The Journal of Economic History, Cambridge University Press, vol. 72(2), pages 364-392, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Broadberry, Stephen & Lennard, Jason, 2023. "European business cycles and economic growth, 1300-2000," Economic History Working Papers 120364, London School of Economics and Political Science, Department of Economic History.
    2. Broadberry, Stephen & Lennard, Jason, 2024. "European business cycles and economic growth, 1300–2000," Explorations in Economic History, Elsevier, vol. 94(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Chilosi & Carlo Ciccarelli, 2023. "Italy in the Great Divergence: What Can We Learn from Engel’s Law?," CEIS Research Paper 562, Tor Vergata University, CEIS, revised 18 Jul 2023.
    2. David Chilosi & Carlo Ciccarelli, 2021. "Southern and Northern Italy in the Great Divergence: New Perspectives from the Occupational Structure," Quaderni di storia economica (Economic History Working Papers) 47, Bank of Italy, Economic Research and International Relations Area.
    3. David Chilosi & Carlo Ciccarelli, 2022. "Evolving gaps: Occupational structure in southern and northern Italy, 1400–1861," Economic History Review, Economic History Society, vol. 75(4), pages 1349-1378, November.
    4. Bassino, Jean-Pascal & Broadberry, Stephen & Fukao, Kyoji & Gupta, Bishnupriya & Takashima, Masanori, 2019. "Japan and the great divergence, 730–1874," Explorations in Economic History, Elsevier, vol. 72(C), pages 1-22.
    5. Kumon, Yuzuru, 2022. "How Landownership Equality Created a Low Wage Society: Pre-industrial Japan, 1600-1870," IAST Working Papers 22-138, Institute for Advanced Study in Toulouse (IAST).
    6. Nuno Palma & André C. Silva, 2024. "Spending A Windfall," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 65(1), pages 283-313, February.
    7. Maria Carmela Schisani & Luigi Balletta & Giancarlo Ragozini, 2021. "Crowding out the change: business networks and persisting economic elites in the South of Italy over Unification (1840–1880)," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 15(1), pages 89-131, January.
    8. Maria Carmela Schisani & Luigi Balletta & Giancarlo Ragozini, 2021. "Crowding out the change: business networks and persisting economic elites in the South of Italy over Unification (1840–1880)," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 15(1), pages 89-131, January.
    9. Weisdorf, Jacob & Rota, Mauro, 2020. "Italy and the Industrial Revolution: Evidence from Stable Employment in Rural Areas," CEPR Discussion Papers 14652, C.E.P.R. Discussion Papers.
    10. Broadberry, Stephen & Gardner, Leigh, 2014. "African economic growth in a European mirror: a historical perspective," Economic History Working Papers 56493, London School of Economics and Political Science, Department of Economic History.
    11. Groth, Christian & Persson, Karl Gunnar, 2016. "Growth or stagnation in pre-industrial Britain? A revealed income growth approach," CAGE Online Working Paper Series 264, Competitive Advantage in the Global Economy (CAGE).
    12. Broadberry, Stephen, 2021. "Accounting for the Great Divergence: Recent Findings from Historical National Accounting," CEPR Discussion Papers 15936, C.E.P.R. Discussion Papers.
    13. Tepper, Alexander & Borowiecki, Karol Jan, 2015. "Accounting for breakout in Britain: The industrial revolution through a Malthusian lens," Journal of Macroeconomics, Elsevier, vol. 44(C), pages 219-233.
    14. Peter M. Solar, 2021. "China, Europe, and the Great Divergence: Further Concerns about the Historical GDP Estimates for China," Working Papers 0217, European Historical Economics Society (EHES).
    15. Zhai, Runzhuo & Lou, Zhaohui, 2022. "Chinese agricultural output and TFP: 1661–2019," Economics Letters, Elsevier, vol. 213(C).
    16. Carlo Ciccarelli & Jacob Weisdorf, 2019. "Pioneering into the past: Regional literacy developments in Italy before Italy," European Review of Economic History, European Historical Economics Society, vol. 23(3), pages 329-364.
    17. Francisco J. Beltrán Tapia & Gabriele Cappelli, 2024. "Missing girls in Liberal Italy, 1861–1921," Economic History Review, Economic History Society, vol. 77(1), pages 185-211, February.
    18. Humphries, Jane, 2023. "Respectable standards of living: the alternative lens of maintenance costs, Britain 1270-1860," Economic History Working Papers 119284, London School of Economics and Political Science, Department of Economic History.
    19. Jaime Reis, 2016. "The Gross Agricultural Output of Portugal: A Quantitative, Unified Perspective, 1500-1850," Working Papers 0098, European Historical Economics Society (EHES).
    20. Baomin Dong & Jiong Gong & Kaixiang Peng & Zhongxiu Zhao, 2015. "Little Divergence: Evidence from Cotton Textiles in Japan and China 1868–1930," Review of Development Economics, Wiley Blackwell, vol. 19(4), pages 776-796, November.

    More about this item

    Keywords

    JEL Classification:;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cge:wacage:667. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jane Snape (email available below). General contact details of provider: https://edirc.repec.org/data/dewaruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.