Geography, Structural Change and Economic Development: Theory and Empirics

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1 Geography, Structural Change and Economic Development: Theory and Empirics Edited by Neri Salvadori 1, Pasquale Commendatore 2, and Massimo Tamberi Professor of Economics, University of Pisa, Italy Associate Professor of Economics, University of Naples Federico II, Italy Associate Professor of Economics, Polytechnical University of Marche, Italy Edward Elgar Cheltenham, UK Northampton, MA, USA

2 Neri Salvadori, Pasquale Commendatore and Massimo Tamberi 2009 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts USA A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data ISBN

3 Contents List of contributors Introduction by Pasquale Commendatore, Neri Salvadori and Massimo Tamberi vii ix PART ONE: THE IMPACT OF GEOGRAPHICAL FACTORS: ASPECTS OF LOCATION AND SPECIALIZATION 1. Footloose capital and productive public services 3 Pasquale Commendatore, Ingrid Kubin and Carmelo Petraglia 2. FDI, mode of entry and corporate governance 29 Giuseppina Maria Chiara Talamo 3. Natural resources and social conflict: an explanation of sub- Saharan countries stagnation 68 Davide Fiaschi 4. The changing location of European industry: a twofold geographical perspective 88 Eleonora Cutrini 5. Specialize rightly or decline 125 Alessia Lo Turco and Massimo Tamberi 6. South South Regional Trade Agreements, comparative advantage and industrial growth: evidence from MERCOSUR countries 150 Alessia Lo Turco PART TWO: THE PROCESS OF STRUCTURAL CHANGE AND THE ROLE OF DUALISM 7. Myrdal, growth processes and equilibrium theories 183 Carlo Panico and Maria Olivella Rizza 8. The legacy of dualism in new growth theory 203 Salvatore Capasso and Maria Rosaria Carillo 9. Distribution of agricultural surplus and industrial takeoff 227 Ennio Bilancini and Simone D Alessandro v

4 vi Geography, structural change and economic development 10. Dualism and the big push 241 Giovanni Valensisi 11. Labour productivity and technological capability: an econometric analysis on the Italian regions 280 Giulio Guarini Index 305

5 Contributors Ennio Bilancini, University of Siena, Italy Maria Rosaria Carrillo, University of Naples Parthenope, Italy Salvatore Capasso, University of Naples Parthenope, Italy Pasquale Commendatore, University of Naples Federico II, Italy Eleonora Cutrini, University of Insubria, Italy Simone D Alessandro, University of Pisa, Italy Davide Fiaschi, University of Pisa, Italy Giulio Guarini, Ministero dello Sviluppo Economico, Italy Ingrid Kubin, Vienna University of Economics and Business Administration, Austria Alessia Lo Turco, Polytechnic University of Marche, Italy Carlo Panico, University of Naples Federico II, Italy Carmelo Petraglia, University of Naples Federico II, Italy Maria Olivella Rizza, University of Cassino, Italy Neri Salvadori, University of Pisa, Italy Giuseppina Maria Chiara Talamo, University of Palermo, Italy Massimo Tamberi, Polytechnic University of Marche, Italy Giovanni Valensisi, University of Pavia, Italy vii

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