Industrial policy and productivity growth in Fascist Italy

The first chapter - Crisis? Which Crisis? - constructs a new series of industrial value added at constant (1938) prices for Italy, for the period between 1928 and 1938. The data employed are shown to be better indicators of the dynamic of the Great Depression than those used by Carreras and Felice (2010) and allow to substantially revise the profile of the Crisis. The contraction appears to be more pronounced and persistent, placing the Italian experience more in line with that of other industrialised countries. The second chapter - The Italian Climacteric - presents new estimates of total factor productivity growth for Italy over the Fascist era and compares them with analogous ones for the pre-World War One period and for Germany and Britain. Because of the absence of a fully reliable GDP series, a dual growth accounting framework is employed. This approach permits the incorporation of new data on land rents and of new evidence on the returns to human capital. Results show that during the interwar era Italy experienced a “climacteric", defined as a cessation of TFP growth, which compares poorly with the coeval performance of Britain and Germany. This disappointing result contrasts vividly with what occurred in the late liberal Italy, when TFP grew less quickly than in Germany, but faster than in Britain. The third chapter - A Tale of Two Fascisms - offers the first quantitative assessment of labour productivity dynamics within the Italian industrial sector and of their links with Fascist competition policy. We argue that the institutional context in which Italian firms operated and, in particular, changes in the level of product market competition had a significant effect in determining their productivity performance. By relying on a new dataset and on new labour productivity estimates, we show that the earlier more liberal period of the Fascist era was characterised by a true productivity boom, which ended following the switch to a more interventionist industrial policy. Panel data evidence shows that reductions in the level of competition in the industrial sector were associated with lower productivity growth, while changes in industrial structure were a less significant factor.EThOS - Electronic Theses Online ServiceGBUnited Kingdo