Change vs. decline: A comparative analysis of the evolution of TFP in Italian regions,with a particular attention to the case of Turin

Recently a debate emerged in Italy, about the changing pattern of specialization in the sectors traditionally considered as cornerstones of the national economy. Such changes are far from representing a hopeless process of decline. Rather this process should be regarded as a step in a process of structural change, in which one can find the ingredients of creative destruction. This leads to spell out the hypothesis that the Italian economy has been taking a new direction, rather than a dead-end. In this paper we carry out an analysis of the evolution of Total Factor Productivity in the different macro-sectors at the regional level, over the period 1982-2001. The results of the analysis confirm the existence of a generalized process of transition characterized by the growing weight of service sectors. Within the Piedmont region, the case of Turin is of paramount importance, as it has influenced the national economy since the early decades of the 20^th century. (JEL: O41, O47)