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Cliometrica

, Volume 4, Issue 3, pp 269–292 | Cite as

The effects of unification: markets, policy, and cyclical convergence in Italy, 1861–1913

  • Carlo Ciccarelli
  • Stefano Fenoaltea
  • Tommaso Proietti
Original Paper

Abstract

This paper uses time-series evidence on construction movements to examine the convergence of regional business cycles in the decades that followed Italy’s unification. The aggregate series point to cyclical convergence, but a sector-level analysis traces this result to the decline in differentiated “regional-policy” shocks. The regional market cycles diverged, as regions specialized in different sectors of production; market-cycle convergence is observed only within the “industrial triangle,” the regions of which also developed different specializations. This suggests that the balance between growing interdependence and growing differentiation is not general, as the current literature presumes, but specialization-specific.

Keywords

Unification Regions Specialization Business cycles 

JEL Classification

C22 E32 F15 N93 R11 

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Copyright information

© Springer-Verlag 2009

Authors and Affiliations

  • Carlo Ciccarelli
    • 1
  • Stefano Fenoaltea
    • 1
  • Tommaso Proietti
    • 1
  1. 1.Facoltà di EconomiaUniversità di Roma “Tor Vergata”RomeItaly

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