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Firm Productivity And Institutional Quality: Evidence From Italian Industry

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  • Andrea Lasagni
  • Annamaria Nifo
  • Gaetano Vecchione

Abstract

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.

Suggested Citation

  • Andrea Lasagni & Annamaria Nifo & Gaetano Vecchione, 2015. "Firm Productivity And Institutional Quality: Evidence From Italian Industry," Journal of Regional Science, Wiley Blackwell, vol. 55(5), pages 774-800, November.
  • Handle: RePEc:bla:jregsc:v:55:y:2015:i:5:p:774-800
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    Cited by:

    1. Annamaria Nifo & Gaetano Vecchione, 2015. "A quali imprese vanno i sussidi pubblici? evidenza dall’industria manifatturiera italiana," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2015(3), pages 5-28.
    2. repec:spt:apfiba:v:8:y:2018:i:2:f:8_2_4 is not listed on IDEAS
    3. Agostino, Mariarosaria & Nifo, Annamaria & Trivieri, Francesco & Vecchione, Gaetano, 2016. "Total factor productivity heterogeneity: channelling the impact of institutions," MPRA Paper 72759, University Library of Munich, Germany.
    4. repec:spr:qualqt:v:52:y:2018:i:2:d:10.1007_s11135-017-0496-5 is not listed on IDEAS
    5. Thi Mai Phuong, Chu, 2018. "Impacts of Institutions on the Performances of Enterprises in Vietnam," Papers 1149, World Trade Institute.
    6. repec:spt:apfiba:v::y:2018:i::f:8_2_4 is not listed on IDEAS
    7. Fernanda Ricotta, 2016. "The Quality Of Regional Government And Firm Performance," Working Papers 201606, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    8. Zouaghi, Ferdaous & Hirsch, Stefan & Garcia, Mercedes Sanchez, 2016. "What Drives Firm Profitability? A Multilevel Approach To The Spanish Agri-Food Sector," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244762, German Association of Agricultural Economists (GEWISOLA).
    9. Nifo, Annamaria & Ruberto, Sabrina & Vecchione, Gaetano, 2016. "Does institutional quality matter for lending relationships? Evidence from Italy," MPRA Paper 75279, University Library of Munich, Germany.
    10. repec:gam:jsusta:v:9:y:2017:i:8:p:1432-:d:108228 is not listed on IDEAS
    11. Ganau, Roberto & Rodr�guez-Pose, Andr�s, 2017. "Industrial Clusters, Organized Crime and Productivity Growth in Italian SMEs," CEPR Discussion Papers 12140, C.E.P.R. Discussion Papers.
    12. Lidia Mannarino & Valeria Pupo & Fernanda Ricotta, 2016. "Family Firms And Productivity: The Role Of Institutional Quality," Working Papers 201605, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    13. Fernanda Ricotta, 2016. "The Quality of Regional Government and Firm Performance," ERSA conference papers ersa16p357, European Regional Science Association.

    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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