Explaining the Size Distribution of Plants: An Approach Based on Civic Capital
We show that the distribution of plant size within narrowly defined industries is affected by the variation in the stock of civic capital that occurs at the provincial level. Data on plant size come from the 2001 Italian Census of Manufacturing and Services. Civic capital turns out to have a positive effect on both the average and the standard deviation of the plant size distribution. This effect is stronger in labor-intensive industries. The potential endogeneity of current civic capital is addressed by instrumenting it with historical variables. Our interpretation for these results is that civic capital is associated with reduced opportunistic behavior, which improves intra-firm cooperation and hampers the incidence of principal-agent problems, thus allowing plants to operate on a larger scale.
|Date of creation:||May 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Piazza Scaravilli, 2, and Strada Maggiore, 45, 40125 Bologna|
Phone: +39 051 209 8019 and 2600
Fax: +39 051 209 8040 and 2664
Web page: http://www.dse.unibo.it
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Guido de Blasio & Giorgio Nuzzo, 2010. "Historical Traditions Of Civicness And Local Economic Development," Journal of Regional Science, Wiley Blackwell, vol. 50(4), pages 833-857.
When requesting a correction, please mention this item's handle: RePEc:bol:bodewp:wp755. 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: (Luca Miselli)The email address of this maintainer does not seem to be valid anymore. Please ask Luca Miselli to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.