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Agglomeration economies: new evidence on IT employment growth in Italy

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  • A. Lasagni

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Abstract

This paper uses Local Labour Market Areas (LLMA) data to investigate the dynamics of employment in the Information Technology (IT) sector in Italy 2001-2005. Adopting the framework suggested by Glaeser et al. (1992) and Combes (2000), the aim is to test if agglomeration forces might significantly affect IT local growth. The basic OLS results are broadly consistent with those of earlier studies. In particular, IT employment growth is enhanced by industrial diversity (Jacobs externalities) and by plant size (economies of scale). At the same time, LLMAs with higher IT concentration are associated with lower employment growth rates. As a robustness check, quantile regression analysis is performed. This additional set of results reaveals that the role of agglomeration forces is different across IT growth levels.

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Bibliographic Info

Paper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number 2009-EP08.

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Length: 14 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:par:dipeco:2009-ep08

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Related research

Keywords: agglomeration economies; information technology; LLMA; Italy; quantile regression;

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References

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  1. Henri L.F. de Groot & Jacques Poot & Martijn J. Smit, 2007. "Agglomeration, Innovation and Regional Development: Theoretical Perspectives and Meta-Analysis," Tinbergen Institute Discussion Papers 07-079/3, Tinbergen Institute.
  2. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
  3. J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992. "Industrial Development in Cities," NBER Working Papers 4178, National Bureau of Economic Research, Inc.
  4. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521608275, October.
  5. Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  6. Francesca Mameli & Alessandra Faggian & Philip McCann, 2008. "Employment Growth in Italian Local Labour Systems: Issues of Model Specification and Sectoral Aggregation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 343-360.
  7. Valter Di Giacinto & Giacinto Micucci, 2007. "The producer service sector in Italy: Long-term growth and its local determinants," Temi di discussione (Economic working papers) 643, Bank of Italy, Economic Research and International Relations Area.
  8. Andrea Bonaccorsi & Lucia Piscitello & Cristina Rossi, 2005. "Explaining The Territorial Adoption Of New Technologies - A Spatial Econometric Approach," ERSA conference papers ersa05p92, European Regional Science Association.
  9. Federico Cingano & Fabiano Schivardi, 2004. "Identifying the Sources of Local Productivity Growth," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 720-742, 06.
  10. Combes, Pierre-Philippe, 2000. "Economic Structure and Local Growth: France, 1984-1993," Journal of Urban Economics, Elsevier, vol. 47(3), pages 329-355, May.
  11. Mario Forni & Sergio Paba, 2000. "The Sources of Local Growth: Evidence from Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 59(1), pages 1-49, April.
  12. Nijkamp, P. & Abreu, M., 2009. "Regional development theory," Serie Research Memoranda 0029, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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