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Agglomeration economies, spatial dependence and local industry growth

Author

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  • Raffaele Paci
  • Stefano Usai

Abstract

The main objective of this paper is to analyse the determinants of employment growth at the local industry level. We estimate an empirical model in order to assess the role of different types of agglomeration economies to local growth controlling also for the presence of spatial dependence. The empirical analysis is applied to the case of Italy and refers to 784 Local Labour Systems and 34 industries (21 manufacturing and 13 services) over the period 1991-2001. Econometric results show that local growth is marked by significant differences across sectors. The positive influence of diversity externalities, human and social capital and the negative influence of specialisation externalities and competition are worth a particular mention. Spatial association is also detected signalling that the growth process in a specific area benefits from the positive performance of the surrounding regions.

Suggested Citation

  • Raffaele Paci & Stefano Usai, 2008. "Agglomeration economies, spatial dependence and local industry growth," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 87-109.
    • Handle: RePEc:cai:reidbu:rei_123_0087
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    Citations

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    Cited by:

    1. Roberto BASILE & Cristiana DONATI & Rosanna PITTIGLIO, 2013. "Industry Structure And Employment Growth: Evidence From Semiparametric Geoadditive Models," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 121-160.
    2. Miralles-Quirós, María del Mar & Miralles-Quirós, José Luis & Daza-Izquierdo, Julio, 2018. "Crecimiento empresarial y políticas públicas de desarrollo regional en EUROACE," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 41, pages 215-225.
    3. Emanuela Marrocu & Raffaele Paci & Marco Pontis, 2012. "Intangible capital and firms' productivity," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 21(2), pages 377-402, April.
    4. Emanuela Marrocu & Raffaele Paci & Stefano Usai, 2013. "Productivity Growth In The Old And New Europe: The Role Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 418-442, August.
    5. Gloria Cicerone & Alessandro Crociata & Daniele Mantegazzi, 2021. "Cultural and creative industries and regional diversification: Does size matter?," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 671-687, June.
    6. Andrés Vallone & Coro Chasco, 2020. "Spatiotemporal methods for analysis of urban system dynamics: an application to Chile," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 421-454, April.
    7. Demidova, Olga & Kolyagina, Alena & Pastore, Francesco, 2018. "Marshallian vs Jacobs Effects: Which One Is Stronger? Evidence for Russia Unemployment Dynamics," IZA Discussion Papers 12042, Institute of Labor Economics (IZA).
    8. Francisco Javier ESCRIBA & María José MURGUI, 2014. "Time Varying Agglomeration Effects on Total Factor Productivity in Spanish Regions (1995-2008)," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(2).
    9. Carlos Carreira & Luís Lopes, 2020. "How are the potential gains from economic activity transmitted to the labour factor: more employment or more wages? Evidence from the Portuguese context," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(2), pages 319-348, April.
    10. SHARMA Anand, 2017. "Dynamic Externalities And Regional Manufacturing Growth: Evidence From India," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(1), pages 185-201, April.
    11. Giulio Cainelli & Roberto Ganau & Marco Modica, 2019. "Does related variety affect regional resilience? New evidence from Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(3), pages 657-680, June.
    12. Giulio Cainelli & Andrea Fracasso & Giuseppe Vittucci Marzetti, 2015. "Spatial agglomeration and productivity in Italy: A panel smooth transition regression approach," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 39-67, November.
    13. Igor Kavetskyy, 2023. "Spatial Variation of Employment Growth in Poland in 2005-2021," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 433-449.
    14. Demidova, Olga & Kolyagina, Alena & Pastore, Francesco, 2020. "Marshallian vs Jacobs effects: Which is stronger? Evidence for Russia unemployment dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 244-258.
    15. Francesca Mameli & Simona Iammarino & Ron Boschma, 2012. "Regional variety and employment growth in Italian labour market areas: services versus manufacturing industries," Working Papers 4, Birkbeck Centre for Innovation Management Research, revised Mar 2012.
    16. Marco Percoco, 2017. "Impact of European Cohesion Policy on regional growth: does local economic structure matter?," Regional Studies, Taylor & Francis Journals, vol. 51(6), pages 833-843, June.
    17. Emanuela Marrocu & Raffaele Paci & Marco Pontis, 2011. "Intangible capital and firms productivity (refereed paper)," ERSA conference papers ersa10p496, European Regional Science Association.
    18. Guowei Lyu & Luca Bertolini & Karin Pfeffer, 2020. "Is Labour Productivity Higher in Transit Oriented Development Areas? A Study of Beijing," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 111(4), pages 652-670, September.
    19. A. Lasagni, 2009. "Agglomeration economies: new evidence on IT employment growth in Italy," Economics Department Working Papers 2009-EP08, Department of Economics, Parma University (Italy).
    20. Roberto Basile & Cristiana Donati & Rosanna Pittiglio & Maria Savarese, 2015. "Dinamiche dell?occupazione e struttura produttiva locale in Italia," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(2), pages 33-68.

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