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Mezzogiorno/centre-North: A two-region model for the Italian economy

1988; Elsevier BV; Volume: 10; Issue: 3 Linguagem: Inglês

10.1016/0161-8938(88)90030-0

1873-8060

Mariano D'Antonio, Raffaele Colaizzo, Giuseppe Leonello,

Regional Development and Policy

This paper analyzes the interdependence and the degree of domination and dependence between Italy's economically strong Centre-North and relatively less developed Mezzogiorno regions using two-region social accounting matrices (SAMs) for 1978 and 1984. The view is confirmed that the demand effects generated by public expenditure in favor of the Mezzogiorno's economy are caught by the stronger region through the intermediate and final goods that the industrially weaker area purchases from the stronger one. The Mezzogiorno's subordinate position is thus reinforced by its role as an outlet market for the Centre-North's productive capacity.