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Total Factor Productivity Convergence among Italian Regions: Some Evidence from Panel Unit Root Tests

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  • Joseph Byrne
  • Giorgio Fazio
  • Davide Piacentino

Abstract

Byrne J. P., Fazio G. and Piacentino D. Total factor productivity convergence among Italian regions: some evidence from panel unit root tests. Regional Studies. This paper employs panel unit root tests to investigate convergence in total factor productivity (TFP) among Italian regions. These tests provide an inference valid in the presence of heterogeneity and cross-sectional dependence, and when the cross-sectional dimension is smaller than the time dimension, allowing the investigation of convergence among different subsets of regions. The results add a further dimension to the conventional view on growth dynamics in the Italian peninsula depicting a lack of regional TFP convergence not only at the national level, but also at the level of geographical disaggregations where regions are conventionally thought to converge. [image omitted] Byrne J. P., Fazio G. et Piacentino D. Convergence de la methode des facteurs globaux de productivite entre les regions italiennes: donnees probantes issues de tests de racine unitaire en panel. Regional Studies. Dans cet article, nous utilisons des tests de racine unitaire en panel pour etudier la convergence de la methode des facteurs globaux de productivite entre les regions italiennes. Ces tests nous fournissent une inference valide en presence d'une heterogeneite et d'une dependance transversale, et lorsque la dimension transversale est inferieure a la dimension temporelle, ce qui nous permet d'examiner la convergence entre les differents sous-ensembles de regions. Nos resultats ajoutent une dimension nouvelle a l'opinion classique sur la dynamique de croissance dans la peninsule italienne en decrivant une absence de convergence regionale de la methode des facteurs globaux de productivite non seulement au niveau national, mais egalement au niveau des ventilations geographiques, alors que l'idee conventionnelle veut que ces regions soient en train de converger. Methode des facteurs globaux de productivite Convergence regionale Tests de racine unitaire en panel Byrne J. P., Fazio G. und Piacentino D. Konvergenz der Gesamtfaktorproduktivitat unter italienischen Regionen: Belege anhand von Panel-Unit-Root-Tests. Regional Studies. In diesem Beitrag untersuchen wir mit Hilfe von Panel-Unit-Root-Tests die Konvergenz der Gesamtfaktorproduktivitat unter italienischen Regionen. Diese Tests ermoglichen einen gultigen Ruckschluss bei Prasenz von Heterogenitat und sektionsubergreifender Dependenz sowie in den Fallen, in denen die sektionsubergreifende Dimension kleiner ist als die Zeitdimension, so dass eine Untersuchung der Konvergenz in verschiedenen Untergruppen von Regionen moglich wird. Unsere Ergebnisse verleihen der konventionellen Betrachtung der Wachstumsdynamik auf der italienischen Halbinsel eine weitere Dimension, da sie eine mangelnde Konvergenz der Gesamtfaktorproduktivitat nicht nur auf nationaler Ebene, sondern auch auf der Ebene der geografischen Disaggregationen verdeutlichen, wo normalerweise von einer Konvergenz der Regionen ausgegangen wird. Gesamtfaktorproduktivitat Regionale Konvergenz Panel-Unit-Root-Tests Byrne J. P., Fazio G. y Piacentino D. Convergencia de la productividad total de los factores en regiones italianas: ejemplos de tests de raices unitarias con datos de panel. Regional Studies. En este articulo empleamos tests de raices unitarias con datos de panel para investigar la convergencia en la productividad total de los factores en las regiones italianas. Estos tests nos ofrecen una interferencia valida en presencia de heterogeneidad y dependencia transversal y si la dimension transversal es menor que la dimension del tiempo, podemos investigar la convergencia entre los diferentes subgrupos de regiones. Nuestros resultados anaden una dimension adicional a la imagen convencional sobre las dinamicas de crecimiento en la peninsula italiana representando una falta de convergencia regional en la productividad total de los factores no solo a nivel nacional sino tambien en los niveles de desagregacion geografica donde se supone tradicionalmente que las regiones se convergen. Productividad total de los factores Convergencia regional Tests de raices unitarias con datos de panel

Suggested Citation

  • Joseph Byrne & Giorgio Fazio & Davide Piacentino, 2009. "Total Factor Productivity Convergence among Italian Regions: Some Evidence from Panel Unit Root Tests," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 63-76.
  • Handle: RePEc:taf:regstd:v:43:y:2009:i:1:p:63-76
    DOI: 10.1080/00343400701654137
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    References listed on IDEAS

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    Cited by:

    1. B. Biagi & MG. Ladu, 2015. "Productivity and employment dynamics: new evidence from Italian regions," Working Paper CRENoS 201505, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. Roberto Esposti, 2008. "Regional growth convergence and EU policies: Empirical evidence and measuring problems," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(1), pages 14-22, April.
    3. Lidia Mannarino & Valeria Pupo & Fernanda Ricotta, 2016. "Family Firms And Productivity: The Role Of Institutional Quality," Working Papers 201605, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    4. Paola Cardamone & Valeria Pupo & Fernanda Ricotta, 2016. "Do Firms Benefit from University Research? Evidence from Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 2(3), pages 445-471, November.
    5. Aiello, Francesco & Pupo, Valeria & Ricotta, Fernand, 2011. "Explaining TFP at firm level in Italy. Does location matter?," MPRA Paper 35656, University Library of Munich, Germany.
    6. Aiello, Francesco & Pupo, Valeria & Ricotta, Fernanda, 2013. "Firm heterogeneity in TFP, sectoral innovation and geography. Evidence from Italy," MPRA Paper 48573, University Library of Munich, Germany.
    7. repec:eee:jcecon:v:46:y:2018:i:1:p:308-325 is not listed on IDEAS
    8. Giorgio Fazio & Davide Piacentino, 2010. "A Spatial Multilevel Analysis of Italian SMEs' Productivity," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(3), pages 299-316.
    9. Boltho, Andrea & Carlin, Wendy & Scaramozzino, Pasquale, 2018. "Why East Germany did not become a new Mezzogiorno," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 308-325.
    10. Alexiadis, Stilianos & Eleftheriou, Konstantinos, 2010. "The Morphology of Income Convergence in US States: New Evidence using an Error-Correction-Model," MPRA Paper 20096, University Library of Munich, Germany.
    11. David Sondermann, 2014. "Productivity in the euro area: any evidence of convergence?," Empirical Economics, Springer, vol. 47(3), pages 999-1027, November.
    12. Francesco Aiello & Valeria Pupo & Fernanda Ricotta, 2014. "Explaining Total Factor Productivity at Firm Level in Italy: Does Location Matter?," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(1), pages 51-70, March.
    13. repec:taf:pocoec:v:28:y:2016:i:3:p:314-334 is not listed on IDEAS
    14. repec:spr:epolit:v:35:y:2018:i:2:d:10.1007_s40888-018-0103-9 is not listed on IDEAS
    15. Simone Gitto & Paolo Mancuso, 2015. "The contribution of physical and human capital accumulation to Italian regional growth: a nonparametric perspective," Journal of Productivity Analysis, Springer, vol. 43(1), pages 1-12, February.
    16. Amjad Naveed & Nisar Ahmad, 2016. "Labour productivity convergence and structural changes: simultaneous analysis at country, regional and industry levels," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-17, December.
    17. Millán Díaz-Foncea & Carmen Marcuello, 2014. "The Relation between Total Employment and Cooperative Employment: A Convergence and Causality Analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(1), pages 71-92, March.

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