The Role of the Marshall Plan in the Italian Post-WWII Recovery
This paper studies the e↵ects of international aid on long-term economic growth. It exploits plausibly exogenous di↵erences between Italian provinces in the amount of grants disbursed through the Marshall Plan for the reconstruction of public in- frastructures. Provinces that received more reconstruction grants experienced a larger increase in the number of industrial firms and workers after 1948. Individuals and firms in these areas also started developing more patents. The same provinces experienced a faster mechanization of the agricultural sector. Motorized machines, such as tractors, replaced workers and significantly boosted agricultural production. Finally, we present evidence that shows how reconstruction grants induced economic growth by allowing Italian provinces to modernize their transportation and communication network.
Bianchi, Nicola. 2018. The Role of the Marshall Plan in the Italian Post-WWII Recovery.