Napoleonic Administrative Reforms and Development in the Italian Mezzogiorno

We study how changes in the administrative hierarchy of a country affect development at the city level. We use the 1806 Napoleonic administrative reform implemented in the Kingdom of Naples as a historical experiment to assess whether district capitals with supra-municipal administrative functions enjoyed an urban development premium compared with non-capital cities. We find that district capitals recorded a population growth premium throughout the 19th century (1828–1911) and experienced higher industrialization than non-capital cities, both before and after the Italian unification. We explain our findings through mechanisms relating to public goods provision and transport network accessibility.