Italy’s journey from Savoy monarchy to democratic republic

Modern Italy, which, as a great power, traditionally occupies an important position in world politics and economy, can be truly understood only on the basis of knowledge of its past and, above all, the historical circumstances of the emergence and development of a unified Italian state. This monograph attempts to analyze the political, economic and social aspects of Italy’s path from the Risorgimento to the present day. Special attention is paid to the evolution of the party-political system, the post-war ＂Italian miracle＂ and the reasons for its subsequent decline, and Italy’s participation in the process of European integration. The chronological framework of the econometric analysis and the compiled database cover the 70 years between 1950 and 2020. Investigating the growth of the Italian economy on the demand side, the author identified factors such as investment, foreign trade and exchange rate. To analyze the supply-side factors, an endogenous general Caldorovian type growth model with an embedded mechanism of technological progress was used, taking into account both physical and human capital, as well as time as an event space of creative economic activity.