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Explaining labour productivity differentials across Italian regions: the role of socio-economic structure and factor endowments

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  • Valter Di Giacinto
  • Giorgio Nuzzo

Abstract

This article aims at explaining substantial and persistent regional labour productivity differentials in Italy. First, the role played by the diversity of local economic structures is quantitatively assessed. Within-industry productivity levels are then related to regional endowments of physical and human capital per worker and to total factor productivity. Subsequently, an empirical evaluation of the influence exercised by a selected set of explanatory factors on regional total factor productivity (TFP) levels is performed. In this context, spatial econometrics techniques are employed to obtain inferences that are robust to the presence of spatial autocorrelation in the data. Copyright (c) 2006 the author(s). Journal compilation (c) 2006 RSAI.

Suggested Citation

  • Valter Di Giacinto & Giorgio Nuzzo, 2006. "Explaining labour productivity differentials across Italian regions: the role of socio-economic structure and factor endowments," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 299-320, June.
  • Handle: RePEc:bla:presci:v:85:y:2006:i:2:p:299-320
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    References listed on IDEAS

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    1. R. Pala & E. Marrocu & R. Paci, 2000. "Estimation of total factor productivity for regions and sectors in Italy. A panel cointegration approach," Working Paper CRENoS 200016, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. Raffaele Paci & Francesco Pigliaru, 1999. "Growth and sectoral dynamics in the Italian regions," Chapters,in: Economic Growth and Change, chapter 12 Edward Elgar Publishing.
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    Cited by:

    1. Di Caro, Paolo, 2014. "Testing and explaining economic resilience with an application to Italian regions," MPRA Paper 60298, University Library of Munich, Germany.
    2. Aiello, Francesco & Pupo, Valeria & Ricotta, Fernand, 2011. "Explaining TFP at firm level in Italy. Does location matter?," MPRA Paper 35656, University Library of Munich, Germany.
    3. 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.
    4. Aiello, Francesco & Cardamone, Paola, 2012. "Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 205-220.
    5. Barbara Dettori & Emanuela Marrocu & Raffaele Paci, 2012. "Total Factor Productivity, Intangible Assets and Spatial Dependence in the European Regions," Regional Studies, Taylor & Francis Journals, vol. 46(10), pages 1401-1416, November.
    6. Emanuela Marrocu & Raffaele Paci & Marco Pontis, 2011. "Intangible capital and firms productivity (refereed paper)," ERSA conference papers ersa10p496, European Regional Science Association.
    7. Francesco Aiello & Valeria Pupo & Fernanda Ricotta, 2014. "Explaining Total Factor Productivity at Firm Level in Italy: Does Location Matter?," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(1), pages 51-70, March.
    8. Emanuela Marrocu & Raffaele Paci & Marco Pontis, 2012. "Intangible capital and firms' productivity," Industrial and Corporate Change, Oxford University Press, vol. 21(2), pages 377-402, April.
    9. repec:bla:presci:v:96:y:2017:i:1:p:93-113 is not listed on IDEAS
    10. Nicola Pontarollo, 2016. "Sectoral Productivity, Convergence And Space Between European Regions," Journal of Smart Economic Growth, , vol. 1(1), pages 1-27, August.
    11. Domenica Panzera & Paolo Postiglione, 2014. "Economic growth in Italian NUTS 3 provinces," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 273-293, August.
    12. Giuseppe Albanese & Marco M. Sorge, 2010. "On the Production Function for Italy," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 118(4), pages 401-416.
    13. Davide Piacentino, 2008. "Productivity, Infrastructures and Convergence: Panel Data Evidence on Italian Regions," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2008(2), pages 5-26.
    14. repec:seg:012016:v:1:y:2016:i:1:p:1-17 is not listed on IDEAS
    15. Nicola Pontarollo & Elisa Montresor & Francesco Pecci, 2012. "Sectoral productivity convergence between European regions: does space matter?," ERSA conference papers ersa12p559, European Regional Science Association.
    16. Mauro Mussini & Biancamaria Zavanella, 2015. "Measuring bipolarization in labour productivity in Italy: a new index and its decomposition by sectors and regional factors," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2015(3), pages 29-55.
    17. Nikos Benos & Nikolaos Mylonidis & Stefania Zotou, 2017. "Estimating production functions for the US states: the role of public and human capital," Empirical Economics, Springer, vol. 52(2), pages 691-721, March.
    18. Succurro, Marianna, 2014. "Intangible assets finance: a complementary or substitution effect between external and internal channels? Evidence from the Italian divide," MPRA Paper 57247, University Library of Munich, Germany.

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