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What Sorts of Agglomerations Really Matter to Productivity?: A Regional Analysis of Europe's Manufacturing Sector


  • Bracalente, Bruno

    (U Perugia)

  • Perugini, Cristiano

    (U Perugia)

  • Pompei, Fabrizio

    (U Perugia)


The objective of this paper is to analyze the effects on regional manufacturing productivity of various external factors that characterize the economic, social, and institutional environments to which they belong. We define and distinguish here between homogeneous and urban heterogeneous external economies. Hypotheses of the existence and co-existence of the two types of external effects are formulated and tested for six manufacturing subsectors of the regions of 13 western EU countries from 1995 to 2004. Although the available data are far from optimal, the empirical analysis that they enable provides various insights that partly corroborate our conjectures. In particular, the results supply evidence of the generalized beneficial effects of urban heterogeneous agglomeration. They also reveal the complexity and sector-specificity of the effects of industry specialization patterns.

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  • Bracalente, Bruno & Perugini, Cristiano & Pompei, Fabrizio, 2008. "What Sorts of Agglomerations Really Matter to Productivity?: A Regional Analysis of Europe's Manufacturing Sector," The Review of Regional Studies, Southern Regional Science Association, vol. 38(2), pages 145-172.
  • Handle: RePEc:rre:publsh:v:38:y:2008:i:2:p:145-72

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    Cited by:

    1. Pompei, Fabrizio, 2013. "Efficiency And Productivity Growth Across The Italian Regions: The Regional Divide Revisited," MPRA Paper 52052, University Library of Munich, Germany.

    More about this item


    Manufacturing; Productivity; Regional; Regions; Urban;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • 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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