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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. Raffaele Paci & Stefano Usai, 1998. "Technological enclaves and industrial districts: An analysis of the regional distribution of innovative activity in Europe," ERSA conference papers ersa98p461, European Regional Science Association.
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  9. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
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Cited by:
  1. Nune Hovhannisyan & Wolfgang Keller, 2011. "International Business Travel: An Engine of Innovation?," NBER Working Papers 17100, National Bureau of Economic Research, Inc.

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