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How Provincial is your Region? Effects on Labour Productivity and Employment in Europe

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  • Alfonso Gambardella
  • Myriam Mariani
  • Salvatore Torrisi

Abstract

This paper estimates the determinants of labour productivity in European NUTS regions during 1989-1996. We compare three potential explanations of regional advantages: Technological capabilities (proxied by regional patents), agglomeration economies (employment density), and openness. To study the latter we use the number of airplane passengers embarked and disembarked in the region, and found that this is a meaningful index for the openness of the regions. By using instrumental variables, we confirm existing results that patents and employment density affect labour productivity. Our novel finding is that openness affects labour productivity as well.

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Bibliographic Info

Paper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2003/06.

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Date of creation: 08 Dec 2003
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Handle: RePEc:ssa:lemwps:2003/06

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Keywords: Openness; labour productivity; agglomeration economies; technology; European regions.;

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References

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  1. Puga, Diego, 1997. "The Rise and Fall of Regional Inequalities," CEPR Discussion Papers 1575, C.E.P.R. Discussion Papers.
  2. R. Paci & S. Usai, 1997. "Technological enclaves and industrial districts. An analysis of the regional distributions of innovative activity in Europe," Working Paper CRENoS 199708, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  3. Antonio Ciccone & Robert E. Hall, 1995. "Productivity and the density of economic activity," Economics Working Papers 120, Department of Economics and Business, Universitat Pompeu Fabra.
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  5. Henry G. Overman & Stephen Redding & Anthony J. Venables, 2001. "The economic geography of trade, production, and income: a survey of empirics," LSE Research Online Documents on Economics 3712, London School of Economics and Political Science, LSE Library.
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  7. Antonio Ciccone, 1998. "Agglomeration-effects in Europe," Economics Working Papers 499, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 1999.
  8. Overman, Henry G. & Ulltveit-Moe, Karen-Helene & Venables, Anthony J., 2000. "Comparative Advantage and Economic Geography: Estimating the Location of Production in the EU," CEPR Discussion Papers 2618, C.E.P.R. Discussion Papers.
  9. David T. Coe & Elhanan Helpman, 1993. "International R&D Spillovers," NBER Working Papers 4444, National Bureau of Economic Research, Inc.
  10. Ashish Arora & Jai Asundi, 1999. "Quality Certification and the Economics of Contract Software Development A Study of the Indian Software Industry," NBER Working Papers 7260, National Bureau of Economic Research, Inc.
  11. Bresnahan, Timothy F & Gambardella, Alfonso & Saxenian, AnnaLee, 2001. "'Old Economy' Inputs for 'New Economy' Outcomes: Cluster Formation in the New Silicon Valleys," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 835-60, December.
  12. Arora, Ashish & Arunachalam, V. S. & Asundi, Jai & Fernandes, Ronald, 2001. "The Indian software services industry," Research Policy, Elsevier, vol. 30(8), pages 1267-1287, October.
  13. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
  14. Rodriguez-Clare, Andres, 1996. "Multinationals, Linkages, and Economic Development," American Economic Review, American Economic Association, vol. 86(4), pages 852-73, September.
  15. Arthur, W. Brian, 1990. "'Silicon Valley' locational clusters: when do increasing returns imply monopoly?," Mathematical Social Sciences, Elsevier, vol. 19(3), pages 235-251, June.
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Cited by:
  1. Giorgio Fagiolo & Gianluca Santoni, 2014. "Human-Mobility Networks, Country Income, and Labor Productivity," LEM Papers Series 2014/08, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  2. Hovhannisyan, Nune & Keller, Wolfgang, 2010. "International Business Travel: An Engine of Innovation?," CEPR Discussion Papers 7829, C.E.P.R. Discussion Papers.

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