This paper elaborates on the Italian North–South divide by endorsing a Kaldor–Verdoorn perspective. To assess the endogenous relationship between labour productivity, capital accumulation and output growth, panel structural vector autoregressive (P-SVAR) modelling is applied to 1980–2017 data on Italian macro-regions and areas. Findings show that territorial disparities exist in both the Verdoorn and the capital accumulation effects throughout the country. Output growth has a larger effect on productivity in the Centre–North, while the investment effect is stronger in the South. That stresses the relevance of public effort in stimulating both output and investment – therefore, productivity – especially in economically depressed areas.

Deleidi, M., Paternesi Meloni, W., Salvati, L., Tosi, F. (2021). Output, investment, and productivity: the Italian North-South regional divide from a Kaldor-Verdoorn approach. REGIONAL STUDIES, 55(8), 1376-1387 [10.1080/00343404.2021.1896694].

Output, investment, and productivity: the Italian North-South regional divide from a Kaldor-Verdoorn approach

Deleidi, Matteo
;
Paternesi Meloni, Walter;Salvati, Luigi;Tosi, Francesca
2021-01-01

Abstract

This paper elaborates on the Italian North–South divide by endorsing a Kaldor–Verdoorn perspective. To assess the endogenous relationship between labour productivity, capital accumulation and output growth, panel structural vector autoregressive (P-SVAR) modelling is applied to 1980–2017 data on Italian macro-regions and areas. Findings show that territorial disparities exist in both the Verdoorn and the capital accumulation effects throughout the country. Output growth has a larger effect on productivity in the Centre–North, while the investment effect is stronger in the South. That stresses the relevance of public effort in stimulating both output and investment – therefore, productivity – especially in economically depressed areas.
Deleidi, M., Paternesi Meloni, W., Salvati, L., Tosi, F. (2021). Output, investment, and productivity: the Italian North-South regional divide from a Kaldor-Verdoorn approach. REGIONAL STUDIES, 55(8), 1376-1387 [10.1080/00343404.2021.1896694].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11590/386065
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