The matrix of the Italian economy and developmens in structural interdependence analysis

The article focuses on Leontief’s structural interdependence theory and its recent developments and applications. Fabbrini traces out the origin of this new field of research and provides a rich review of the literature available at that time. In particular the Author discusses the relative merits and limitations of the models based on open and closed matrixes respectively and thoroughly discusses the assumption and the methodological issue involved in the two. The second part of the article is entirely devoted to a detailed comment on the first application of input-output analysis to the Italian post-1951 economic system offered by Chenery, Clark and Cao-Pinna. The author assesses the importance of the methodology undertaken by the abovementioned authors and highlights how their main findings support the possibility of a steady growth rate in the Italian economy driven by a bold program of public investments without imperiling balance of payments equilibrium and monetary stability.