Technical Change, Non-Tariff Barriers, and the Development of the Italian Locomotive Industry, 1850-1913

The locomotive industry was one of the relatively sophisticated “high tech” sectors in which Italy, a late industrializer, was successful before 1913. Using technical data on the performance of different vintages of locomotives, we construct a new industry-level index of technical change. We also study the impact of different policy instruments (import duties, non-tariff trade barriers, and other discretionary interventions) in shaping the development of the industry. Our reassessment reveals not only the sound technological performance of Italian locomotives and successful industry growth, but also the critical role played by non-tariff barriers for the development of the industry.