An Empirical Analysis Of The Industrial Rise Of The Third Italy

Abstract

Much attention has been focussed on the industrial rise of the Third Italy.This particular type of industrial development has been characterized by the growth of a large number of local networks of flexible, small and medium-sized firms, specialised in craft-based industries (such as clothing).It has often been mentioned that the particular social structure in the Third Italy (in terms of common values and norms, etc.) provided a basis on which this particular form of industrial development could emerge.In fact, this social-cultural dimension has been linked to relations of "trust", or "social capital", which not only stimulated interaction and co-ordination between the local actors but also enhanced the flexibility of the local production systems in many respects.However, few studies have actually provided empirical support for these theoretical statements.We present a long-term spatial analysis of Italy, which aims to explain the industrial rise of the Third Italy region in the post-war period.It attempts to assess empirically the impact of local conditions (including the socio-cultural dimension) on regional growth in small-scale, traditionalartisanal industries in Italy during the period 1951-1991.We have made use of several statistical techniques in order to determine which potential factors (such as a culture of cooperation, a tradition of small-scale industry in artisanal sectors, a supply of low-cost, flexible labour, etc.) could be held responsible for the particular form of industrial development in the Third Italy area.By doing so, we also focus attention on the extent to which the industrial rise of the Third Italy region was a rather accidental event that could also have occurred in other regions such as the First Italy (the industrial heartland of the North) and the Second Italy (the backward South).

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