The Long-Run Dynamics of Calabria’s Economy. Persistent Divergence and Structural Constraints

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This paper documents the long-run dynamics of Calabria’s economy over the last three decades and benchmarks them against Italy, the Mezzogiorno, and the Centre-North. Using a set of core macroeconomic indicators, the work provides a unified interpretation of their joint evolution over time. The evidence points to persistent structural divergence. Calabria combines demographic contraction, persistently low labour market participation, weak value-added growth, and productivity dynamics that often reflect employment contraction rather than sustained output expansion. The analysis shows that some commonly used indicators of economic performance require careful interpretation: reductions in unemployment and moderate increases in labour productivity may partly reflect contraction processes – such as declining labour input and withdrawal from the labour market, rather than genuine improvements in economic capacity. As a result, the region’s relative economic position deteriorates over time, particularly when measured by GDP per capita relative to the Centre-North. Taken together, these patterns suggest that demographic decline, fragile labour mobilisation, and limited productive expansion interact cumulatively, reinforcing a long-run trajectory of economic divergence.

Keywords: regional divergence; labour market; productivity; demographic decline; Calabria; Italy.
JEL codes: R11, J21, J64, O47