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Civic capital and the size distribution of plants: short-run dynamics and long-run equilibrium

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  • Matthias Bürker
  • G. Alfredo Minerva

Abstract

We characterize how the size distribution of plants, within narrowly defined industries, is related to the stock of civic capital at the provincial level. Data on plant size come from Italian censuses. Civic capital turns out to have a positive effect on both the average and standard deviation of size. Looking at several precise points of the plant size distribution, we find that it shifts toward the right and becomes more dispersed where civic capital is high. Furthermore, we explore to what extent the effect is heterogeneous across plants in relation to some specific characteristics. The potential endogeneity of current civic capital is addressed by instrumenting it with historical variables. We conclude that the geographic variation in the stock of civic capital poses substantial constraints on plants’ ability to expand. Understanding this is the key for the implementation of effective industrial policies.

Suggested Citation

  • Matthias Bürker & G. Alfredo Minerva, 2014. "Civic capital and the size distribution of plants: short-run dynamics and long-run equilibrium," Journal of Economic Geography, Oxford University Press, vol. 14(4), pages 797-847.
    • Handle: RePEc:oup:jecgeo:v:14:y:2014:i:4:p:797-847.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbt032
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    Cited by:

    1. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    2. Sean M. Dougherty, 2014. "Legal Reform, Contract Enforcement and Firm Size in Mexico," Review of International Economics, Wiley Blackwell, vol. 22(4), pages 825-844, September.
    3. Roberto Antonietti & Ron Boschma, 2021. "Social capital, resilience, and regional diversification in Italy [Social capital, innovation and growth: evidence from Europe]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(3), pages 762-777.
    4. Charlie Karlsson & Urban Gråsjö & Sofia Wixe (ed.), 2015. "Innovation and Entrepreneurship in the Global Economy," Books, Edward Elgar Publishing, number 15906.
    5. repec:spo:wpmain:info:hdl:2441/432sbils8u9t7qa99cii5psht1 is not listed on IDEAS
    6. Mattia Balestra & Giulio Cainelli & Roberto Ganau & Nadiia Matsiuk & Mario Pasquato & Roberto Pierdicca, 2025. "Sovereignty, Civic Capital, and Local Development. A Historical Perspective in Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 2504, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2025.
    7. Giuseppe Terzo, 2021. "Social capital, social economy and economic resilience of Italian provinces," Papers in Regional Science, Wiley Blackwell, vol. 100(5), pages 1113-1135, October.
    8. Yann Algan & Pierre Cahuc, 2010. "Inherited Trust and Growth," American Economic Review, American Economic Association, vol. 100(5), pages 2060-2092, December.
    9. Mariarosaria Agostino & Sabrina Ruberto, 2023. "Family Ties, Social Capital and Small Businesses’ Efficiency. Evidence from the Italian Food Sector," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 935-955, December.
    10. Christoph Hauser, 2015. "Effects of Employee Social Capital on Wage Satisfaction, Job Satisfaction and Organizational Commitment," Working Papers 2015-12, Faculty of Economics and Statistics, Universität Innsbruck.
    11. Roberto Antonietti & Maria Rosaria Ferrante & Riccardo Leoncini, 2016. "Local market size, social capital and outsourcing: evidence from Emilia Romagna," Small Business Economics, Springer, vol. 47(1), pages 243-260, June.
    12. Riccardo Leoncini & Giulia Vecchiato & Luca Zamparini, 2020. "Triggering cooperation among firms: an empirical assessment of the Italian Network Contract Law," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 357-380, July.
    13. Roberto Antonietti & Maria Rosaria Ferrante & Riccardo Leoncini, 2014. "Trust your neighbour. Industrial relatedness, social capital and outsourcing," Papers in Evolutionary Economic Geography (PEEG) 1403, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2014.
    14. Daniel A. Brent & Katie Lorah, 2017. "The Geography of Civic Crowdfunding: Implications for Social Inequality and Donor-Project Dynamics," Departmental Working Papers 2017-09, Department of Economics, Louisiana State University.
    15. Ganau, Roberto & Rodríguez-Pose, Andrés, 2023. "Firm-level productivity growth returns of social capital: Evidence from Western Europe," CEPR Discussion Papers 17979, C.E.P.R. Discussion Papers.
    16. Christoph Hauser & Urban Perkmann & Sibylle Puntscher & Janette Walde & Gottfried Tappeiner, 2016. "Trust Works! Sources and Effects of Social Capital in the Workplace," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 589-608, September.
    17. Roberto Antonietti & Maria Rosaria Ferrante & Riccardo Leoncini, 2015. "Infrastructure endowment, social capital and outsourcing: evidence from Emilia Romagna, Italy," Chapters, in: Charlie Karlsson & Urban Gråsjö & Sofia Wixe (ed.), Innovation and Entrepreneurship in the Global Economy, chapter 13, pages 310-330, Edward Elgar Publishing.
    18. Bürker, Matthias & Mammi, Irene & Minerva, G. Alfredo, 2021. "Civic capital and service outsourcing: Evidence from Italy," European Economic Review, Elsevier, vol. 138(C).
    19. Matthias Buerker & Gaetano Alfredo Minerva, 2013. "Civic Capital and the Vertical Integration of Service Provision: Evidence from Italy," ERSA conference papers ersa13p1209, European Regional Science Association.

    More about this item

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • 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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