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Spatial agglomeration, Global Value Chains, and productivity. Micro-evidence from Italy and Spain

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  • Cainelli, Giulio
  • Ganau, Roberto
  • Giunta, Anna

Abstract

We investigate the relationship between spatial agglomeration and firms’ labor productivity in Italy and Spain, examining firm-level heterogeneity in Global Value Chain positioning. We analyze a sample of 4025 manufacturing firms during the period from 2010 to 2014 and employ a shift-share instrumental variable approach. We find that agglomeration has a positive effect on labor productivity for suppliers but not for final firms.

Suggested Citation

  • Cainelli, Giulio & Ganau, Roberto & Giunta, Anna, 2018. "Spatial agglomeration, Global Value Chains, and productivity. Micro-evidence from Italy and Spain," Economics Letters, Elsevier, vol. 169(C), pages 43-46.
    • Handle: RePEc:eee:ecolet:v:169:y:2018:i:c:p:43-46
    DOI: 10.1016/j.econlet.2018.04.020
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    2. Faggio, Giulia & Overman, Henry, 2014. "The effect of public sector employment on local labour markets," Journal of Urban Economics, Elsevier, vol. 79(C), pages 91-107.
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    5. Accetturo, Antonio & Giunta, Anna, 2018. "Value chains and the great recession: Evidence from Italian and German firms," International Economics, Elsevier, vol. 153(C), pages 55-68.
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    Cited by:

    1. Cainelli, Giulio & Ganau, Roberto & Giunta, Anna, 2022. "Business groups, institutions, and firm performance," LSE Research Online Documents on Economics 114553, London School of Economics and Political Science, LSE Library.
    2. Lei Luo & Zhenhua Zheng & Jing Luo & Yuqiu Jia & Qi Zhang & Chun Wu & Yifeng Zhang & Jia Sun, 2020. "Spatial Agglomeration of Manufacturing in the Wuhan Metropolitan Area: An Analysis of Sectoral Patterns and Determinants," Sustainability, MDPI, vol. 12(19), pages 1-23, September.
    3. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, 2022. "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    4. Giunta, A. & Montalbano, P. & Nenci, S., 2022. "Consistency of micro- and macro-level data on global value chains: Evidence from selected European countries," International Economics, Elsevier, vol. 171(C), pages 130-142.
    5. Bhushan Praveen Jangam & Badri Narayan Rath, 2021. "Do global value chains enhance or slog economic growth?," Applied Economics, Taylor & Francis Journals, vol. 53(36), pages 4148-4165, August.
    6. Bhushan P Jangam & Vaseem Akram, 2019. "Does participation in global value chain foster export concentration?," Economics Bulletin, AccessEcon, vol. 39(4), pages 2913-2920.
    7. Dong Feng & Jian Li & Xintao Li & Zaisheng Zhang, 2019. "The Effects of Urban Sprawl and Industrial Agglomeration on Environmental Efficiency: Evidence from the Beijing–Tianjin–Hebei Urban Agglomeration," Sustainability, MDPI, vol. 11(11), pages 1-12, May.
    8. Chenxi Li & Kening Wu & Xiangyu Gao, 2020. "Manufacturing industry agglomeration and spatial clustering: Evidence from Hebei Province, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 2941-2965, April.
    9. Upalat Korwatanasakul & Tran Thi Hue, 2022. "Global Value Chain Participation and Labour Productivity in Manufacturing Firms in Viet Nam: Firm-Level Panel Analysis," Working Papers DP-2022-34, Economic Research Institute for ASEAN and East Asia (ERIA).
    10. Dolores Añon Higón & Ionnanis Bournakis, 2024. "Global Value Chains (GVCs) participation and Markups," Working Papers 2403, Department of Applied Economics II, Universidad de Valencia.

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    More about this item

    Keywords

    Agglomeration; Firm productivity; Global Value Chain; Italy; Spain;
    All these keywords.

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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