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A note on the relationship between the total factor productivity and the network of firms

Author

Listed:
  • Antonio Palestrini

    (Università Politecnica delle Marche)

  • Enrico Guzzini

    (Università Politecnica delle Marche)

Abstract

In this paper we study the robustness of the results found recently by Guzzini and Palestrini (J Econ Interact Coord 11:35–55, 2016). Since the original analysis was carried out in a static setting, we perform a dynamic panel analysis by using the same dataset. The inclusion of the lagged value of the endogenous variable, missing in the original paper, could be justified for several reasons. Firstly, the statistical relationship may have itself a dynamical nature; secondly the inclusion of lagged-endogenous variable is a way to mitigate the possibility of an omitted variable problem. We find that the results are only qualitatively the same, and we discuss the quantitative differences.

Suggested Citation

  • Antonio Palestrini & Enrico Guzzini, 2019. "A note on the relationship between the total factor productivity and the network of firms," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 14(2), pages 419-423, June.
    • Handle: RePEc:spr:jeicoo:v:14:y:2019:i:2:d:10.1007_s11403-017-0203-6
    DOI: 10.1007/s11403-017-0203-6
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Total factor productivity; Solow residual; Dynamic panel analysis;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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