THE ECONOMIC DYNAMISM OF ITALY S PROVINCES

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1 Aspen Institute Italia National Interest Project August 2009 THE ECONOMIC DYNAMISM OF ITALY S PROVINCES MEASURING LOCAL INDUSTRIAL EXCELLENCE The analysis was conducted at provincial level. The weighted structural dependency ratio was arrived at through a series of intervening steps that enabled the contribution of the working age population to growth to be assessed and variances in employment s and labor to be gauged. The three maps shown in Figure 1 give a snapshot of the economic dynamism of Italy s provinces, moving progressively from a ratio which solely considers demographic data, then on to a ratio employment s and, finally, to one that also takes into account labor differentials, each calculated as follows: 1. the Structural Dependency Ratio (): is the ratio of individuals aged 0 14 years and 65 years and over to the total economically active population (aged between years); 2. the Structural Dependency Ratio (E): here, the denominator of the is adjusted to take into account the employment (taking into account only those employed locally) of the relevant province for the year 2008; and 3. the composite Structural Dependency Ratio and level (EP): in this case, the denominator of the is adjusted for the employment and level of the relevant province. The three maps in Figure 1 represent the different degrees of structural dependency according to the three indicators mentioned above. The different color shading (with the intensity of color being proportional to the degree of structural dependency revealed by the respective formulae used) reflect a situation marked, as a whole, by wide discrepancies between the different macro areas of the country, with the North whilst having, on, an older population than the South being characterized by greater overall economic dynamism. In this regard, attention is drawn to the complete reversal of the color intensity distribution that takes place in the transition from the first to the third map. Aspen Institute Italia The economic dynamism of Italy s provinces National Interest Project August

2 Hence, whilst demographic factors alone give the impression of a South that is relatively younger than the North and Center of the country, the structural dependency ratios are reversed once economic factors are taken into account. The analysis further shows albeit within the context of a marked territorial imbalance that even within the South there is a significant variance in performance levels, with some provinces being characterized by appreciable levels of economic dynamism. Tables 1 6 show the figures for Italy s most economically dynamic provinces, considered in relation to the figures for the various geographical macro areas (namely, Northwestern, Northeastern, Central and Southern Italy, and the Italian islands). Lombard provinces show the highest levels of economic vitality with respect to both the macro area they belong to (Northwest Italy) and to the overall national figure, with particularly high employment s and labor levels. The province of Milan has the highest labor levels in the country. In the Northeast, there is a relatively low level of variance in ratios as well as some of the highest employment s in the country (71% in Modena and 70.6% in Reggio Emilia). In Central Italy, Rome stands out for its high figure (coming in at 95.9% of ), whilst the Tuscan provinces have high s of employment (with 67.6% in Florence, 66.5% in Arezzo, 65% in Pistoia, 64.8% in Pisa, and 64.5% in Grosseto). Finally, with respect to Italy s South and islands, it is the Abruzzi and Sardinian provinces that performed best in terms of economic dynamism, especially as regards employment s, which are considerably higher than the for the macro areas they belong to. Figure 1 The economic dynamism of Italy s provinces as revealed by their structural dependency ratios Structural dependency ratio () weighted by employment Composite weighted by employment and labor Aspen Institute Italia The economic dynamism of Italy s provinces National Interest Project August

3 Source: Figures calculated on the basis of ISTAT data Aspen Institute Italia The economic dynamism of Italy s provinces National Interest Project August

4 Table 1 Average structural dependency ratios broken down by geographical 1 Northeastern Northwestern Island Central Southern Table 2 Italy s most economically dynamic provinces: NORTHWESTERN ITALY in 1 Milan Bergamo Varese Brescia Lecco Cremona Mantua Aosta Como Novara Northwestern Table 4 - Italy s most economically dynamic provinces: NORTHEASTERN ITALY in 1 Bolzano Reggio Emilia Modena Parma Padua Verona Trento Treviso 49, Belluno Aspen Institute Italia The economic dynamism of Italy s provinces National Interest Project August

5 10 Vicenza Northeastern Table 4 - Italy s most economically dynamic provinces: CENTRAL ITALY in 1 Rome Pisa Pistoia Prato Florence Arezzo Grosseto Rieti Frosinone Siena Central Table 5 - Italy s most economically dynamic provinces: SOUTHERN ITALY in 1 L'Aquila Chieti Teramo Pescara Bari Southern Table 6 - Italy s most economically dynamic provinces: ITALIAN ISLANDS in 1 Cagliari Olbia - Tempio Carbonia - Iglesias Sassari Medio Campidano Island Aspen Institute Italia The economic dynamism of Italy s provinces National Interest Project August

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