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Local multipliers at work

Author

Listed:
  • Augusto Cerqua
  • Guido Pellegrini

Abstract

We propose a novel evaluation strategy to estimate local multipliers in Italy during 1996–2006. We find the presence of positive multipliers: 0.26–0.33 for the tradable sector (manufacturing) and 0.88–1.13 for the non-tradable sector (construction and services). They are lower than what was previously found for the United States but much higher than those identified for European and Asian countries. The reasons for this finding lie in the higher accuracy of the data, in the relevance of the instrument used, and in the widespread underutilization of production factors.

Suggested Citation

  • Augusto Cerqua & Guido Pellegrini, 2020. "Local multipliers at work," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(4), pages 959-977.
    • Handle: RePEc:oup:indcch:v:29:y:2020:i:4:p:959-977.
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    File URL: http://hdl.handle.net/10.1093/icc/dtaa004
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    Citations

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    Cited by:

    1. Augusto Cerqua & Guido Pellegrini, 2020. "Labor mobility effects of a firm-level shock," Working Papers 1/20, Sapienza University of Rome, DISS.
    2. Oriane Lafuente-Sampietro, 2021. "The multiplier effect of convertible local currencies : case study on two French schemes," Working Papers halshs-03324625, HAL.
    3. Alessio Baldassarre & Danilo Carullo & Paolo Caro & Elisa Fusco & Pasquale Giacobbe & Carlo Orecchia, 2025. "A New Approach to Measure Italian Regional Trade Flows with Administrative Micro Firm-Level Data," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(1), pages 65-101, March.
    4. Yusuf Mercan & Benjamin Schoefer, 2020. "Jobs and Matches: Quits, Replacement Hiring, and Vacancy Chains," American Economic Review: Insights, American Economic Association, vol. 2(1), pages 101-124, March.
    5. Tavares, José & Alpalhão, Henrique & Lopes, Marta & Pereira Dos Santos, Joao, 2020. "Public Expenditure and Private Firm Performance: Using Religious Denominations for Causal Inference," CEPR Discussion Papers 14448, C.E.P.R. Discussion Papers.
    6. repec:osf:socarx:xs8zg_v1 is not listed on IDEAS
    7. Andrea Ascani & Simona Iammarino, 2018. "Multinational enterprises, service outsourcing and regional structural change," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(6), pages 1585-1611.
    8. Taner Osman & Tom Kemeny, 2022. "Local job multipliers revisited," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 150-170, January.
    9. Cerqua, Augusto & Pellegrini, Guido, 2022. "Decomposing the employment effects of investment subsidies," Journal of Urban Economics, Elsevier, vol. 128(C).
    10. Gutierrez-Posada, Diana & Kitsos, Tasos & Nathan, Max & Nuccio, Massimiliano, 2021. "Do Creative Industries Generate Multiplier Effects? Evidence from UK Cities, 1997-2018," SocArXiv xs8zg, Center for Open Science.
    11. André Spithoven & Bruno Merlevede, 2023. "The productivity impact of R&D and FDI spillovers: characterising regional path development," The Journal of Technology Transfer, Springer, vol. 48(2), pages 560-590, April.
    12. Viviana Celli & Augusto Cerqua & Guido Pellegrini, 2023. "The long-term effects of mass layoffs: do local economies (ever) recover?," Journal of Economic Geography, Oxford University Press, vol. 23(5), pages 1121-1144.

    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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