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Diffusion of Modern Economic Growth in Italy and Europe - Research Paper Example


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Diffusion of Modern Economic Growth in Italy and Europe

The literature notes that immediately after the unification, the level of actual economic integration in Europe was at a low level, especially in light of the fact that the Northern part of Italy was at a higher level of development compared to the Southern regions of the unified country. Meanwhile, in the period after the unification up until 1882, a process that was said to have started in 1832, well before the political unification, there was an observed trend towards the lowering of price differences of goods between North and South, a sign that in fact economic integration and diffusion was already happening during that immediate period before and after political unification. This in turn was traced to two things: one, the heightened economic integration between Northern Italy and the rest of Europe; and two, the parallel increased economic integration between Southern Italy and the rest of Europe, which allowed the southern part of the country to catch up with its Northern neighbor, and lower the economic disparity between the two Italian regions (Missiaia 2-4).
The disparities in economic strength and size between North and South, and the subsequent diffusion of economic growth to and from the two regions and the surrounding areas of Europe are the big markers as far as the economic implications of the Italian unification are concerned. Some studies made use of proxy figures of trade, such as wheat prices and trade volumes, workforce educational attainment, cereals consumption, labor

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force distribution by sector, freight traffic, wages per region, and per capita industrial output, others. others. All pointed to the North being in a position to absorb a fairly rapid industrialization pace, even as the rest of the country lagged behind and was in an agricultural economic mode predominantly. This meant that the diffusion of economic growth, characterized by the leveling of prices and economic output between North and South, occurred at a slow pace, and with it, the integration of the Italian economy with the rest of industrializing Europe (Missiaia 2-33; Di Vaio 2-9). Taking a strep back though, from all of the data, and granted that economic unification was a process that took a long time to achieve, there is some consensus that that economic integration and the diffusion of economic growth from developed to less-developed regions of Italy and from neighboring European territories to Italy occurred as a result of political upheavals during the period, including the unification of Italy (Missiaia 2-33; Di Vaio 2-9; Acemoglu et al.). The link between Italy and the rest of Europe economically has been established in data cited above, indirectly, and through a number of parameters and variables. One study notes that an inference can be made of the tighter economic integration between the laggard eastern part of Italy and the res


The literature notes that the political unification of Italy, achieved by after the so-called “Expedition of the Thousand”, and after two other wars fought in the name of Italian independence, occurred in 1861. …
Diffusion of Modern Economic Growth in Italy and Europe
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