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Productivity Differentiantion Along the Development Process: a "Meso" Approach

Author

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  • Massimo Tamberi

    () (Dipartimento di Scienze Economiche e Sociali - Universita' Politecnica delle Marche)

Abstract

"Firms are different" and everyone knows it by direct experience: tendency toward a productivity differentiation is a consequence of the fact that, generally speaking, new goods and new processes are continuously introduced in the market. Nevertheless, imitation and firm selection tend to act as counter-balancing forces. It is possible to imagine that forces increasing firm differences (in term of productivity) act stronger in developing countries, and that, contemporaneously, the selection process is weaker in these same economies. Fragmentary empirical indications suggest that productivity differentiation among firms/sectors is effectively higher in poorer countries. This paper is a step to deep this question in more general terms: it proposes and empirically tests a "development" perspective to analyze productivity differentials, and this seems a substantial novelty. Results, with a few limits, support the hypothesis that inter-industry productivity differentials are negatively associated with the level of development.

Suggested Citation

  • Massimo Tamberi, 2018. "Productivity Differentiantion Along the Development Process: a "Meso" Approach," Working Papers 427, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:427
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    File URL: http://docs.dises.univpm.it/web/quaderni/pdf/427.pdf
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    References listed on IDEAS

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    1. Massimo Del Gatto & Gianmarco I. P. Ottaviano & Marcello Pagnini, 2008. "Openness To Trade And Industry Cost Dispersion: Evidence From A Panel Of Italian Firms," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 97-129.
    2. Luca Benedictis & Marco Gallegati & Massimo Tamberi, 2009. "Overall trade specialization and economic development: countries diversify," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(1), pages 37-55, April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    productivity differentials; economic development;

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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