Dependence, development, growth. Descriptions, concepts, evidence
The first part of the essay is devoted to clarify the notion of economic
dependence and its relation to development, as a distinct concept from
growth. A distinction between exogeneous and endogenous dependence is
proposed and it is shown that, contrary to prevailing opinions, exogenous
dependence is not necessarily detrimental to economic development.
Indeed, it may support development. Whether this happens or not
depends on a series of conditions. The second part of this essay is focused
on Italy’s Mezzogiorno and applies to it the conceptual tools developed
in the first part. Available data on the net trasfer of financial resources
from the North to the South are analyzed and interpreted. This leads to
criticize some common ideas on the role and the features of these transfers
and to the conclusion that such transfers have been declining in recent
years with negative consequences on the dependence of the South.