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Be productive or face decline. On the sources and determinants of output growth in Italian manufacturing firms

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  • Francesco Aiello

    ()
    (University of Calabria)

  • Camilla Mastromarco

    ()
    (University of Salento)

  • Angelo Zago

    ()
    (Department of Economics (University of Verona))

Abstract

We investigate the sources and determinants of output growth of Italian manufacturing firms. Applying stochastic frontier techniques, we decompose output growth into factor accumulation and TFP growth from 1998 to 2003. TFP growth is further decomposed into technological change, efficiency change, and scale effects.We find that both input accumulation and TFP growth are important in explaining output growth. In addition, efficiency change (technological catch-up) is the most significant component of TFP growth. Finally, using a specific formulation of the asymmetric error component, we find that R&D spillovers, banking efficiency and public infrastructures have statistically significant and economically relevant effects on the technological catch-up.

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Bibliographic Info

Paper provided by University of Verona, Department of Economics in its series Working Papers with number 46/2008.

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Length: 33
Date of creation: Mar 2008
Date of revision:
Handle: RePEc:ver:wpaper:46/2008

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Keywords: growth accounting; stochastic frontiers; TFP; R&D spillovers; banking efficiency; infrastructure; Italian manufacturing firms;

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Cited by:
  1. Albanese Giuseppe & Marinelli Giuseppe, 2013. "Organized Crime and Productivity: Evidence from Firm-Level Data," Rivista italiana degli economisti, Società editrice il Mulino, issue 3, pages 367-394.
  2. Wang, Jue & Liu, Xiaming & Wei, Yingqi & Wang, Chengang, 2014. "Cultural Proximity and Local Firms’ catch up with Multinational Enterprises," World Development, Elsevier, vol. 60(C), pages 1-13.
  3. Aiello, Francesco & Ricotta, Fernanda, 2014. "Firm heterogeneity in productivity across Europe. What explains what?," MPRA Paper 56222, University Library of Munich, Germany.
  4. Mastromarco, Camilla & Zago, Angelo, 2012. "On modeling the determinants of TFP growth," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 373-382.

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