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Spillovers and the Growth of Local Industries

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  • Forni, Mario
  • Paba, Sergio

Abstract

In this paper we investigate the nature and directions of inter-industry dynamic linkages across Italian manufacturing sectors. We perform a very disaggregated analysis in order to identify, for each 3-digit industry, which composition of industrial activity is more conducive to growth. We find that diversity matters for growth, but each industry needs its own diversity. We provide some evidence of clustering of industries based on dynamic externalities. We find that many spillovers occur within input-output relationships. They often originate in downstream sectors favouring the growth of upstream industries. Lastly, the importance of spillovers does not depend on the technological intensity of the industry. Copyright 2002 by Blackwell Publishing Ltd

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  • Forni, Mario & Paba, Sergio, 2002. "Spillovers and the Growth of Local Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 50(2), pages 151-171, June.
  • Handle: RePEc:bla:jindec:v:50:y:2002:i:2:p:151-71
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