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

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Author Info
Alfonso Gambardella
Myriam Mariani
Salvatore Torrisi

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

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  2. Rodriguez-Clare, Andres, 1996. "Multinationals, Linkages, and Economic Development," American Economic Review, American Economic Association, vol. 86(4), pages 852-73, September. [Downloadable!] (restricted)
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  6. 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. [Downloadable!] (restricted)
  7. 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. [Downloadable!] (restricted)
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  9. Krugman, P. & Venables, A.J., 1995. "Globalization and the Inequality of Nations," Research Institute of Industrial Economics Working Papers 430, Research Institute of Industrial Economics (IFN).
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  10. Raffaele Paci, Stefano Usai, 2000. "Technological Enclaves and Industrial Districts: An Analysis of the Regional Distribution of Innovative Activity in Europe," Regional Studies, Taylor and Francis Journals, vol. 34(2), pages 97-114, April. [Downloadable!] (restricted)
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  11. Overman, Henry G. & Redding, Stephen J & Venables, Anthony J., 2001. "The Economic Geography of Trade Production and Income: A Survey of Empirics," CEPR Discussion Papers 2978, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  12. Stephen Redding & Anthony J. Venables, 2001. "Economic Geography and International Inequality," International Trade 0103003, EconWPA. [Downloadable!]
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  13. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February. [Downloadable!] (restricted)
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  14. Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 577-98, August. [Downloadable!] (restricted)
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  15. Jeffrey A. Frankel & David Romer, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June. [Downloadable!] (restricted)
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