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Agglomeration economies and growth-The case of Italian local labour systems, 1991-2001

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  • R. Paci
  • S. Usai

Abstract

The main objective of this paper is to assess the role of a large set of factors which potentially relate agglomeration economies to local growth. Such a relationship is analysed thanks to an ample database on the case of Italy which refers to 784 Local Labour Systems and 34 sectors (21 manufacturing and 13 services) over the period 1991-2001. Econometric results show that local growth in Italy is characterized by significant differences across sectors. It is worth mentioning the positive influence of diversity externalities, human and social capital and the negative influence of specialisation externalities and competition. Spatial association is also detected.

Suggested Citation

  • R. Paci & S. Usai, 2006. "Agglomeration economies and growth-The case of Italian local labour systems, 1991-2001," Working Paper CRENoS 200612, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    • Handle: RePEc:cns:cnscwp:200612
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    Cited by:

    1. Agarwalla, Astha, 2011. "Agglomeration Economies and Productivity Growth in India," IIMA Working Papers WP2011-01-08, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Maria Dav? & Isidora Barbaccia, 2015. "Measuring agglomeration by spatial effects: a proposal," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2015(1), pages 44-70.
    3. Giacinto Micucci & Valter di Giacinto, 2009. "The Producer Service Sector in Italy: Long-term Growth and its Local Determinants," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(4), pages 391-425.
    4. Lucio Morettini & Giulio Perani & Giorgio Sirilli, 2013. "The Concentration of Knowledge Activities in Italy: An Analysis at Local Level," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 7(2), pages 28-39.
    5. Giulio Cainelli & Eleonora Di Maria & Roberto Ganau, 2011. "Agglomeration, related-variety and internationalisation. Does a relationship exist?," Openloc Working Papers 1114, Public policies and local development.
    6. Cainelli, Giulio & Lupi, Claudio, 2008. "Does Spatial Proximity Matter? Micro-evidence from Italy," Economics & Statistics Discussion Papers esdp08042, University of Molise, Department of Economics.
    7. O'Connor, Sean & Doyle, Eleanor & Doran, Justin, 2018. "Diversity, employment growth and spatial spillovers amongst Irish regions," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 260-267.
    8. Roberto Antonietti & Giulio Cainelli, 2011. "The role of spatial agglomeration in a structural model of innovation, productivity and export: a firm-level analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 577-600, June.
    9. OA Carboni & G Medda, 2007. "Government Size and the Composition of Public Spending in a Neoclassical Growth Model," Working Paper CRENoS 200701, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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    More about this item

    Keywords

    agglomeration externalities; local growth; spatial dependence;
    All these keywords.

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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