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Local manufacturing productivity markers: an empirical study of the Italian counties

Author

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  • Stefano Manzocchi

    (LUISS University)

  • Beniamino Quintieri

    (University of Rome Tor Vergata)

  • Gianluca Santoni

    (CEPII)

Abstract

We analyse productivity differentials across about 63,000 manufacturing firms located in 103 Italian counties, in order to shed light on the relation between the business environment and firm performance. We find that a limited set of local variables related to institutional quality, local credit development, market access and innovation environment significantly contribute to explaining manufacturing productivity differentials in Italy. Our empirical findings confirm that firm competitiveness reacts to the local business environment on a multidimensional scale. This suggests that better targeted regional policies at the national and EU level, including measures for fostering convergence or decentralizing wage negotiations, should take into account the interdependence between productivity and the economic environment.

Suggested Citation

  • Stefano Manzocchi & Beniamino Quintieri & Gianluca Santoni, 2017. "Local manufacturing productivity markers: an empirical study of the Italian counties," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 255-279, July.
    • Handle: RePEc:spr:anresc:v:59:y:2017:i:1:d:10.1007_s00168-017-0830-9
    DOI: 10.1007/s00168-017-0830-9
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    1. Sergio Paba & Giovanni Solinas & Luca Bonacini & Silvia Fareri, 2020. "Robots, Trade and Employment in Italian Local Labour Systems," Department of Economics 0183, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".

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    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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