The State Holding System in Italian Economic Development

Abstract

Italy was a latecomer among European countries which in the nineteenth century followed the lead of England in industrialisation. The first great industrial upswing during which growth was especially rapid in the producer goods sectors and in power production only started in 1896, coinciding with the turning point of an international cycle and the ensuing upsurge in economic activity both in Europe and in the United States. The subsequent period of rapid industrial expansion lasted for a good decade and saw the creation, virtually from nothing, of important new industrial branches requiring very large investments. Given the lack of capital accumulation within industry itself or from other sources, a crucial role in the financing of this development fell upon the banks.

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