Institutional Structure, Industrialization and Rural Development: An Evolutionary Interpretation of the Italian Experience

This paper proposes an evolutionary reading of rural development referred to cases of rapid industrial growth, where a strong concentration process has involved the main urban centers and the successful industrial districts. This territorial development pattern has gradually extinguished rural society and its institutional basis, creating a clear separation between new central and peripheral areas. The consequent effects on local economy and social dynamics reveal the long-term risks raised in terms of development sustainability. An empirical study of two Italian provinces is also carried out to show how this framework can be helpful in interpreting real historical patterns. Copyright 2002 Gatton College of Business and Economics, University of Kentucky.