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Explaining TFP at firm level in Italy. Does location matter?

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  • Aiello, Francesco
  • Pupo, Valeria
  • Ricotta, Fernand

Abstract

This study considers how firms’ internal variables and regional factors affect the total factor productivity of Italian manufacturing firms. Due to of the hierarchical structure of data in estimation, we employ a multilevel model. Results, which refer to 2006, show the importance of firm-specific determinants of TFP, but at the same time confirm the role of regional context in explaining the gap in TFP levels which exist between the South and the North of Italy. In this respect, we show that northern firms are localised in regions with adequate endowment of infrastructure, with efficient public administration and with high R&D intensity and, as a result of these factors, perform better than firms operating in less well endowed regions.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35656.

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Date of creation: 30 Dec 2011
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Handle: RePEc:pra:mprapa:35656

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Keywords: Manufacturing Firms; Total Factor Productivity; Italian Regional Divide; Multilevel Models;

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  31. repec:fth:stanho:e-93-6 is not listed on IDEAS
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Citations

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Cited by:
  1. Aiello, Francesco & Pupo, Valeria & Ricotta, Fernanda, 2013. "Firm heterogeneity in TFP, sectoral innovation and geography. Evidence from Italy," MPRA Paper 48573, University Library of Munich, Germany.
  2. Cardamone, Paola & Pupo, Valeria & Ricotta, Fernanda, 2014. "Do firms benefit from university research? Evidence from Italy," MPRA Paper 57034, University Library of Munich, Germany.
  3. Mahlberg, Bernhard & Freund, Inga & Crespo Cuaresma, Jesús & Prskawetz, Alexia, 2013. "The age-productivity pattern: Do location and sector affiliation matter?," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 01/2013, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).

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