An Analysis of Interregional Migration in Italy

11
The first view, prevailing up to the 1990s, emphasises the “natural poverty” of 
the South which arose from a dry climate, shortness of natural resources, low levels 
of human and social capital, and a feudal heritage in the land system. The North, by 
contrast, in particular the North-West, was a natural candidate for industrialization 
because of a more favourable geographical position and natural endowments, more 
advanced human and social capital, better transport infrastructure, improved credit 
markets, and the existence of crucial manufactures (Felice, 2011). 
The alternative view considers the South to be the wealthiest and more advanced 
part of the Italian peninsula but exploited by the North. The Kingdom of the Two 
Sicilies (the actual South without Sardinia) had larger monetary resources in 1860, 
which were appropriated by the Kingdom of Piedmont-Sardinia and redirected by the 
new Italian state in favour of northern infrastructures, to promote the process of 
northern industrialisation, and to pay the debts of the House of Savoy, the royal 
family leading the newly formed Kingdom of Italy (Felice, 2011; Aprile, 2011).
2
 At 
this time, several Southern regions displayed important signs of modernity and 
dynamism, showing a potential for industrialization similar to the North-West 
(Felice, 2011). However, for many years after the unification, cutting-edge Southern 
industries were dismantled or allowed to perish, due either to unfair competition 
from the North, or as a consequence of explicit decisions made by the newly formed 
Italian State (Aprile, 2011; De Crescenzo, 2002).
3
 
New studies have been progressively emerging for the past few decades, 
resulting in a deeper knowledge of the economy after 1861, especially with the 
publication of new statistical series and analysis of the organization of economic 
activity, technology, economic policy, North-South disparities and changes in 
income distribution. This progress has been quite remarkable (Malanima & Zamagni, 
2010). 
                                                 
2 Before the unification, Italy was divided into seven different territories and, according to the studies 
of Nitti (1993), the Kingdom of the Two Sicilies had about 65.7% of all the money circulating in the 
peninsula, followed by Papal States (14%), Duchy of Tuscany (12.9%), Kingdom of Piedmont-
Sardinia (4%), Venice (1.9%), Lombrady (1.2), Parma and Modena (0.3%). 
3
 For a broad review of the industrial history in the Kingdom of the Two Sicilies, see De Crescenzo 
(2002) and Pedio (1977).