Mariano D'Antonio

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

Abstract This paper analyzes the interdependence and the degree of domination and dependence between Italys 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 Mezzogiornos economy are caught by the stronger region through the intermediate and final goods that the industrially weaker area purchases from the stronger one. The Mezzogiornos subordinate position is thus reinforced by its role as an outlet market for the Centre-Norths productive capacity.