Abstract

This paper focuses on economic diversity in Italian provinces and tests whether it is associated to growth. First the degree of diversity of Italian provinces is measured. Data concern employment levels at provincial level over the period 1951-2001 across 47 industries. Second the correlation between diversity and growth by province and over the observed time period is estimated. Finally, after confirming the relevance of economic diversity, the industry pattern that boosted growth in the largest provinces is investigated and compared to that of the smallest ones.