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Firm Productivity And Institutional Quality: Evidence From Italian Industry

Listed author(s):
  • Andrea Lasagni
  • Annamaria Nifo
  • Gaetano Vecchione

type="main"> This paper aims to contribute to the debate on the determinants of differentials in firms’ productivity. We test the hypothesis that macro factors, especially the quality of local institutions, play a central role in explaining firm productivity in Italy. To this end, we construct measures of Total Factor Productivity (TFP) for about 4,000 firms by means of different estimation techniques, and a province-level index of institutional quality. Then, we estimate the relationship between institutional quality and firm-level TFP. Our results show that the existence of better local institutions might help firms to become more productive.

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File URL: http://hdl.handle.net/10.1111/jors.12203
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Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 55 (2015)
Issue (Month): 5 (November)
Pages: 774-800

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Handle: RePEc:bla:jregsc:v:55:y:2015:i:5:p:774-800
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