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Convergence and Regional Productivity Divide in Italy: Evidence from Panel Data

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  • Aiello, Francesco
  • Scoppa, Vincenzo

Abstract

Abstract: Using a panel data model to control for differences in regional technological levels and to take into account endogeneity, we find two key results for the growth of Italian regions. Firstly, we show that the rate of conditional convergence of each region is much higher (from 12% to 18% according to specifications) than that estimated in standard cross-section regressions (2%). Secondly, a large part of productivity gaps across regions cannot be imputed to differences in physical or human capital but it is rather related to relevant differences in Total Factor Productivity (TFP).

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17343.

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Date of creation: Aug 2008
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Handle: RePEc:pra:mprapa:17343

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Keywords: economic growth; convergence; regional TFP heterogeneity; Italy;

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References

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  1. Fabiani, S. & Pellegrini, G., 1997. "Education, Infrastructure, Geography and Growth: An Empirical Analysis of the Development of Italian Provinces," Papers 323, Banca Italia - Servizio di Studi.
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  5. Scoppa, Vincenzo, 2007. "Quality of Human and Physical Capital and Technological Gaps across Italian Regions," MPRA Paper 15740, University Library of Munich, Germany.
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  11. Francesco Aiello & Vincenzo Scoppa, 2000. "Uneven Regional Development in Italy: Explaining Differences in Productivity Levels," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 59(2), pages 270-298, September.
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Citations

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Cited by:
  1. Francesco Aiello & Valeria Pupo, 2009. "L’Impatto Dei Fondi Strutturali In Italia," Working Papers 200901, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  2. Aiello Francesco & Pupo Valeria, 2011. "Structural Funds and Economic Divide in Italy," ERSA conference papers ersa10p136, European Regional Science Association.
  3. Silvia Dal Bianco, 2009. "A Reassessment of Italian Regional Convergence through a Non-Parametric Approach," Quaderni di Dipartimento 099, University of Pavia, Department of Economics and Quantitative Methods.
  4. Davide Piacentino, 2008. "Productivity, Infrastructures and Convergence: Panel Data Evidence on Italian Regions," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2008(2), pages 5-26.
  5. Daniele, Vittorio, 2007. "Divari regionali e crescita del Mezzogiorno, 1980-2004
    [Sources of growth and convergence among Italian regions 1980-2004]
    ," MPRA Paper 4994, University Library of Munich, Germany, revised 02 Aug 2007.
  6. Davide Piacentino & Erasmo Vassallo, 2011. "Exploring the sources of labour productivity growth and convergence in the Italian regions: some evidence from a production frontier approach," The Annals of Regional Science, Springer, vol. 46(2), pages 469-486, April.
  7. Stefano Magrini, 2007. "Analysing Convergence through the Distribution Dynamics Approach: Why and how?," Working Papers 2007_13, Department of Economics, University of Venice "Ca' Foscari".
  8. Pupo Valeria & Aiello Francesco, 2009. "L'impatto della politica regionale dell'Unione Europea. Uno studio sulle regioni italiane," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 421-454.

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