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Agglomeration economies, spatial dependence and local industry growth

Author

Listed:
  • Raffaele Paci
  • Stefano Usai

Abstract

The main objective of this paper is to analyse the determinants of employment growth at the local industry level. We estimate an empirical model in order to assess the role of different types of agglomeration economies to local growth controlling also for the presence of spatial dependence. The empirical analysis is applied to the case of Italy and refers to 784 Local Labour Systems and 34 industries (21 manufacturing and 13 services) over the period 1991-2001. Econometric results show that local growth is marked by significant differences across sectors. The positive influence of diversity externalities, human and social capital and the negative influence of specialisation externalities and competition are worth a particular mention. Spatial association is also detected signalling that the growth process in a specific area benefits from the positive performance of the surrounding regions.

Suggested Citation

  • Raffaele Paci & Stefano Usai, 2008. "Agglomeration economies, spatial dependence and local industry growth," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 87-109.
  • Handle: RePEc:cai:reidbu:rei_123_0087
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    Citations

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    Cited by:

    1. Roberto BASILE & Cristiana DONATI & Rosanna PITTIGLIO, 2013. "Industry Structure And Employment Growth: Evidence From Semiparametric Geoadditive Models," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 121-160.
    2. Giulio Cainelli & Andrea Fracasso & Giuseppe Vittucci Marzetti, 2015. "Spatial agglomeration and productivity in Italy: A panel smooth transition regression approach," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 39-67, November.
    3. repec:ris:invreg:0378 is not listed on IDEAS
    4. Emanuela Marrocu & Raffaele Paci & Stefano Usai, 2013. "Productivity Growth In The Old And New Europe: The Role Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 418-442, August.
    5. Demidova, Olga & Kolyagina, Alena & Pastore, Francesco, 2018. "Marshallian vs Jacobs Effects: Which One Is Stronger? Evidence for Russia Unemployment Dynamics," IZA Discussion Papers 12042, Institute of Labor Economics (IZA).
    6. repec:taf:regstd:v:51:y:2017:i:6:p:833-843 is not listed on IDEAS
    7. Francisco Javier ESCRIBA & María José MURGUI, 2014. "Time Varying Agglomeration Effects on Total Factor Productivity in Spanish Regions (1995-2008)," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(2).
    8. Giulio Cainelli & Roberto Ganau & Marco Modica, 2019. "Does related variety affect regional resilience? New evidence from Italy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(3), pages 657-680, June.
    9. repec:blg:journl:v:12:y:2017:i:1:p:185-201 is not listed on IDEAS
    10. Roberto Basile & Cristiana Donati & Rosanna Pittiglio & Maria Savarese, 2015. "Dinamiche dell’occupazione e struttura produttiva locale in Italia," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(2), pages 33-68.

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