This paper analyzes the characteristics and the economic impact of the Italian diaspora. It surveys the Italian emigration pattern describing the features of the Italian emigrants, their area of origins and the directions of their movements. The determinants of the migration choice and the socio-economic conditions of the Italy are then examined as well as the policies affecting the decisions to migrate. Also an analysis of the economic effects of the migration are provided. In particular, this paper assesses the impact of the transnational social capital of the Italian migration on Italy`s economic development.