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Labour productivity in Italian regions: A gravitational model approach

Author

Listed:
  • Filipowicz Katarzyna

    (Department of Mathematical Economics, Jagiellonian University, 24 Gołębia St, 31-007 Cracow, Poland)

  • Kelebaj Oleksij

    (Faculty of Management and Social Communication, Jagiellonian University, 24 Gołębia St, 31-007 Cracow, Poland)

  • Tokarski Tomasz

    (Department of Mathematical Economics, Jagiellonian University, 24 Gołębia St, 31-007 Cracow, Poland)

Abstract

The aim of the paper is to assess the causes of spatial variations in labour productivity of Italian regions using the gravitational model of economic growth. The model is an extension of Robert Solow’s economic growth model. The model parameters are calibrated using historical data and numerical simulations of the long-run equilibrium states of the model are carried out. The scenarios considered in the paper vary in forecast investment rates, employment growth rates and urbanisation rates. Based on the results of numerical simulations, it is claimed that to achieve the full convergence in labour productivity, it is necessary to maintain higher investment rates in the south of the country than in Lombardy (by about 4%–11%), and to keep investment rates in central and northern Italy at a similar level as in Lombardy. The fall in investment has affected the poorest regions, Southern Italy, the most, followed by central Italy and the richest regions of the north of the country the least.

Suggested Citation

  • Filipowicz Katarzyna & Kelebaj Oleksij & Tokarski Tomasz, 2024. "Labour productivity in Italian regions: A gravitational model approach," Economics and Business Review, Sciendo, vol. 10(2), pages 92-117.
    • Handle: RePEc:vrs:ecobur:v:10:y:2024:i:2:p:92-117:n:1002
    DOI: 10.18559/ebr.2024.2.1027
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    References listed on IDEAS

    as
    1. Paci, Raffaele & Pigliaru, Francesco, 1997. "Structural change and convergence: an Italian regional perspective," Structural Change and Economic Dynamics, Elsevier, vol. 8(3), pages 297-318, August.
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    5. Katarzyna Mroczek & Andrzej Nowosad & Tomasz Tokarski, 2015. "Oddziaływanie efektu grawitacyjnego na zróżnicowanie wydajności pracy w krajach bałkańskich," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 15-53.
    6. Gaetano Carmeci & Luciano Mauro, 2002. "TheConvergence of the Italian Regions and Unemployment: Theory and Evidence," Journal of Regional Science, Wiley Blackwell, vol. 42(3), pages 509-532, August.
    7. Maffezzoli Marco, 2006. "Convergence Across Italian Regions and the Role of Technological Catch-Up," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(1), pages 1-43, August.
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    10. Katarzyna Filipowicz & Tomasz Tokarski & Mariusz Trojak, 2015. "Złote reguły akumulacji kapitału w grawitacyjnym modelu wzrostu gospodarczego," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 27-47.
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    Keywords

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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