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Homogeneous, Urban Heterogeneous, or both? External Economies and Regional Manufacturing Productivity in Europe

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  • Bruno Bracalente
  • Cristiano Perugini
  • Fabrizio Pompei

Abstract

The objective of this paper is to analyse theoretically and empirically the effects of sectoral homogeneity and urban heterogeneity on regional manufacturing “pure” productivity differentials. Hypotheses of the existence and co-existence of the two types of external effects are formulated and tested for the regions of 13 Western EU countries by means of panel data spatial econometric techniques. The outcomes clearly support our conjectures and also reveal how a simply strong manufacturing sector, i.e., not accounting for internal specialisation, may be harmful to productivity. This result, and the existence of heterogeneous externalities, are confirmed for a sample of regions extended to Eastern European countries.

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Bibliographic Info

Paper provided by Università di Perugia, Dipartimento Economia, Finanza e Statistica in its series Quaderni del Dipartimento di Economia, Finanza e Statistica with number 51/2008.

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Length: 24 pages
Date of creation: 01 Apr 2008
Date of revision:
Handle: RePEc:pia:wpaper:51/2008

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Related research

Keywords: homogeneous and urban heterogeneous external economies; manufacturing productivity; EU regions;

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Cited by:
  1. Francesco Venturini, 2011. "Product variety, product quality, and evidence of Schumpeterian endogenous growth: a note," Quaderni del Dipartimento di Economia, Finanza e Statistica 93/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  2. Stefano Herzel, Stefano & Marco Nicolosi, Marco & Starica, Catalin, 2010. "The cost of sustainability on optimal portfolio choices," Sustainable Investment and Corporate Governance Working Papers 2010/15, Sustainable Investment Research Platform.
  3. Damiani, Mirella & Pompei, Fabrizio & Ricci, Andrea, 2011. "Temporary job protection and productivity growth in EU economies," MPRA Paper 29698, University Library of Munich, Germany.
  4. Silvia Micheli, 2010. "Learning Curve and Wind Power," Quaderni del Dipartimento di Economia, Finanza e Statistica 81/2010, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  5. Mirella Damiani, 2010. "Labour regulation, corporate governance and varieties of capitalism," Quaderni del Dipartimento di Economia, Finanza e Statistica 76/2010, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  6. Davide Castellani & Fabio Pieri, 2011. "Foreign Investments and Productivity Evidence from European Regions," Quaderni del Dipartimento di Economia, Finanza e Statistica 83/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.

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