State Intervention and Economic Growth in Southern Italy: the Rise and Fall of the «Cassa Per Il Mezzogiorno» (1950-1986)
Munich Personal RePEc Archive State intervention and economic growth in Southern Italy: the rise and fall of the «Cassa per il Mezzogiorno» (1950-1986) Felice, Emanuele and Lepore, Amedeo Università “G. D’Annunzio” Chieti-Pescara, Second University of Naples 11 February 2016 Online at https://mpra.ub.uni-muenchen.de/69466/ MPRA Paper No. 69466, posted 11 Feb 2016 21:07 UTC 1 Emanuele Felicea Amedeo Leporeb State intervention and economic growth in Southern Italy: the rise and fall of the «Cassa per il Mezzogiorno» (1950-1986) Abstract In the second half of the twentieth century, the Italian government carried out a massive regional policy in southern Italy, through the State-owned agency «Cassa per il Mezzogiorno» (1950-1986). The article reconstructs the activities of the Cassa, by taking ad- vantage of its yearly reports. The agency was effective in the first two decades, thanks to substantial technical autonomy and, in the 1960s, to a strong focus on industrial develop- ment; however, since the 1970s it progressively became an instrument of waste and misalloc- ation. Below this broad picture, we find important differences at the regional level, and signi- ficant correspondence between the quality of state intervention and the regional patterns of GDP and productivity. Keywords: Southern Italy, regional development, State intervention, industrialization, con- vergence. JEL codes: N14, N24, N44, N94. a Emanuele Felice is associate professor of Applied Economics at the University “G. D’Annunzio” Chieti-Pesca- ra, Department of Philosophical, Pedagogical and Economic-Quantitative Sciences, Pescara, Italy. He published extensively on Italy’s regional inequality ad long-run economic growth.
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