IDEAS home Printed from
   My bibliography  Save this article

Influence of district external economies on firm Productivity: a multilevel approach


  • Ruiz Fuensanta , María Jesús

    () (Universidad de Castilla-La Mancha)


The aim of this paper is to empirically investigate the factors affecting the productivity of firms located in industrial districts. With this purpose, individual firm characteristics and the three classic Marshallian sources of external economies are combined within the framework of a Cobb-Douglas production function which is estimated using a sample of 1.968 manufacturing firms located in 45 industrial districts to be found in the Spanish region of Castilla-La Mancha. The methodology used in the estimation is the multilevel analysis which is especially appropriate for the analysis of hierarchical data structures. The results show that district external economies explain a large amount of the between-districts variation in labour productivity.

Suggested Citation

  • Ruiz Fuensanta , María Jesús, 2010. "Influence of district external economies on firm Productivity: a multilevel approach," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 18, pages 61-82.
  • Handle: RePEc:ris:invreg:0062

    Download full text from publisher

    File URL:
    File Function: Full text
    Download Restriction: no

    More about this item


    productivity; external economies; Marshallian industrial districts; hierarchical linear analysis;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:invreg:0062. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julieta Llungo-Ortíz). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.