Spatial Externalities and Local Economic Growth
A vast body of literature has addressed in the last decade the influence of local externalities on industry location and growth. This literature has, however, paid not too much attention to the wider scenario where such phenomena are rooted, that of an ongoing process of structural change which is transforming our economies from manufacturing to service ones. The main objective of this paper is to assess the role of a large set of potential determinants on the process of local agglomeration of economic activity distinguishing between manufacturing and service sectors. We focus on the case of Italy making use of a very ample database on socio-economic indicators for 784 Local Labour Systems and 34 sectors over the period 1991-96. Our database covers both the manufacturing and the service sectors so that the whole economic system is considered. Our econometric results show that local growth in Italy is not a homogeneous process. On the contrary, it is characterized by significant differences across macro regions and especially across sectors. Among the most important determinants of local industry growth, it is worth mentioning the positive role of the diversity externalities. We also find robust evidence of the negative influence of specialisation externalities on labour dynamics at the local industry level. Moreover, we have assessed the effects of other determinants of local growth like human capital, social environment and network externalities. Finally, the spatial analysis shows that in the aggregate economy and also in some sectors there is spatial autocorrelation and, therefore, dynamic spatial models have to be estimated.
|Date of creation:||2002|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.crenos.unica.it/Email:
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.:
- Federico Cingano & Fabiano Schivardi, 2003.
"Identifying the Sources of Local Productivity Growth,"
Temi di discussione (Economic working papers)
474, Bank of Italy, Economic Research and International Relations Area.
- Federico Cingano & Fabiano Schivardi, 2004. "Identifying the Sources of Local Productivity Growth," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 720-742, 06.
- J. Vernon Henderson & Ari Kuncoro & Matthew Turner, 1992.
"Industrial Development in Cities,"
NBER Working Papers
4178, National Bureau of Economic Research, Inc.
- Robert Dekle, 2002. "Industrial Concentration And Regional Growth: Evidence From The Prefectures," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 310-315, May.
- Antonio Ciccone & Robert E. Hall, 1993.
"Productivity and the Density of Economic Activity,"
NBER Working Papers
4313, National Bureau of Economic Research, Inc.
- Pierre-Philippe Combes & Henry Overman, 2003.
"The Spatial Distribution of Economic Activities in the European Union,"
CEP Discussion Papers
dp0587, Centre for Economic Performance, LSE.
- Combes, Pierre-Philippe & Overman, Henry G., 2004. "The spatial distribution of economic activities in the European Union," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 64, pages 2845-2909 Elsevier.
- Pierre-Philippe Combes & Henry G. Overman, 2003. "The spatial distribution of economic activities in the European Union," LSE Research Online Documents on Economics 20023, London School of Economics and Political Science, LSE Library.
- Henderson, J. Vernon, 2003.
"Marshall's scale economies,"
Journal of Urban Economics,
Elsevier, vol. 53(1), pages 1-28, January.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- hUallachain, Breandan O & Satterthwaite, Mark A., 1992. "Sectoral growth patterns at the metropolitan level: An evaluation of economic development incentives," Journal of Urban Economics, Elsevier, vol. 31(1), pages 25-58, January.
- John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
- Alejandro Cuñat & Giovanni Peri, . "Job Creation in Italy: Geography, Technology and Infrastructures," Working Papers 175, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992.
"Growth in Cities,"
3451309, Harvard University Department of Economics.
- Lodde, Sergio, 1999. "Education and growth; some disaggregated evidence from the Italian regions," ERSA conference papers ersa99pa117, European Regional Science Association.
- Brusco, Sebastiano, 1982. "The Emilian Model: Productive Decentralisation and Social Integration," Cambridge Journal of Economics, Oxford University Press, vol. 6(2), pages 167-84, June.
- de Lucio, Juan J. & Herce, Jose A. & Goicolea, Ana, 2002. "The effects of externalities on productivity growth in Spanish industry," Regional Science and Urban Economics, Elsevier, vol. 32(2), pages 241-258, March.
- Krugman, Paul & Venables, Anthony J, 1994.
"Globalization and the Inequality of Nations,"
CEPR Discussion Papers
1015, C.E.P.R. Discussion Papers.
- Krugman, Paul & Venables, Anthony J., 1995. "Globalization and the Inequality of Nations," Working Paper Series 430, Research Institute of Industrial Economics.
- Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," NBER Working Papers 5098, National Bureau of Economic Research, Inc.
- Baldwin, Richard & Martin, Philippe, 2003.
"Agglomeration and Regional Growth,"
CEPR Discussion Papers
3960, C.E.P.R. Discussion Papers.
- Glenn Ellison & Edward L. Glaeser, 1999.
"The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?,"
Harvard Institute of Economic Research Working Papers
1862, Harvard - Institute of Economic Research.
- Edward L. Glaeser & Glenn Ellison, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," American Economic Review, American Economic Association, vol. 89(2), pages 311-316, May.
- Forni, Mario & Paba, Sergio, 2001. "Knowledge Spillovers and the Growth of Local Industries," CEPR Discussion Papers 2934, C.E.P.R. Discussion Papers.
- Desmet, Klaus & Fafchamps, Marcel, 2003. "What are Falling Transport Costs doing to Spatial Concentration Across US Counties?," CEPR Discussion Papers 3853, C.E.P.R. Discussion Papers.
- Giulio Cainelli & Riccardo Leoncini, 1999. "Externalities and long-term local industrial development. Some empirical evidence from Italy," Revue d'Économie Industrielle, Programme National Persée, vol. 90(1), pages 25-39.
- Di Liberto Adriana, 2001. "Stock" di capitale umano e crescita nelle regioni italiane: un approccio "panel," Politica economica, Società editrice il Mulino, issue 2, pages 159-184.
- Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
- Bartelsman, Eric J & Caballero, Ricardo J & Lyons, Richard K, 1994. "Customer- and Supplier-Driven Externalities," American Economic Review, American Economic Association, vol. 84(4), pages 1075-84, September.
When requesting a correction, please mention this item's handle: RePEc:cns:cnscwp:200206. 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: (Antonello Pau)
If references are entirely missing, you can add them using this form.