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Efficiency And Productivity Growth Across The Italian Regions: The Regional Divide Revisited

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  • Pompei, Fabrizio

Abstract

In this paper we study the efficiency and total factor productivity growth of Italian regions by implementing a bootstrap Data Envelopment Analysis method. This approach allows us to perform a sensitivity analysis of the efficiency scores at regional level, in which human capital is included besides traditional inputs. Higher levels of average years of schooling were important for efficiency and TFP growth in the Northern and Central regions. Conversely, the overall scarce human capital accumulation in Southern regions negatively affected their performances. However, both DEA and analysis of decomposition of productivity growth, conducted by means of Malmquist’s index, highlighted that also in Southern regions, in which the growth rate of human capital and TFP was remarkable, the contribution of the improvement in pure efficiency to economic growth was totally nonessential.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 52052.

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Date of creation: 09 Dec 2013
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Handle: RePEc:pra:mprapa:52052

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Keywords: Italian regions; Productivity; Data Envelopment Analysis;

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  1. Bracalente, Bruno & Perugini, Cristiano & Pompei, Fabrizio, 2008. "What Sorts of Agglomerations Really Matter to Productivity?: A Regional Analysis of Europe's Manufacturing Sector," The Review of Regional Studies, Southern Regional Science Association, vol. 38(2), pages 145-72.
  2. Marco Maffezzoli, 2004. "Convergence Across Italian Regions and the Role of Technological Catch-Up," Working Papers 274, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  3. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
  4. F. Bonaglia & L. Picci, 2000. "Lo stock di capitale nelle Regioni Italiane," Working Papers 374, Dipartimento Scienze Economiche, Universita' di Bologna.
  5. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  6. Simar, Leopold & Wilson, Paul W., 2002. "Non-parametric tests of returns to scale," European Journal of Operational Research, Elsevier, vol. 139(1), pages 115-132, May.
  7. Subodh Kumar & R. Robert Russell, 2002. "Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence," American Economic Review, American Economic Association, vol. 92(3), pages 527-548, June.
  8. David Parkin & Bruce Hollingsworth, 1997. "Measuring production efficiency of acute hospitals in Scotland, 1991-94: validity issues in data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 29(11), pages 1425-1433.
  9. Guido Ascari & Valeria Di Cosmo, 2005. "Determinants of Total Factor Productivity in the Italian Regions," Macroeconomics 0511009, EconWPA.
  10. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
  11. Simar, L. & Wilson, P.W., . "Sensitivity analysis of efficiency scores: how to bootstrap in nonparametric frontier models," CORE Discussion Papers RP -1304, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  12. Sergio Destefanis & Vania Sena, 2005. "Public capital and total factor productivity: New evidence from the Italian regions, 1970-98," Regional Studies, Taylor & Francis Journals, vol. 39(5), pages 603-617.
  13. André Sapir, 2005. "Un modello obsoleto? Crescita e specializzone dell'economia italiana," ULB Institutional Repository 2013/8122, ULB -- Universite Libre de Bruxelles.
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