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Agglomeration economies and growth-The case of Italian local labour systems, 1991-2001

  • R. Paci


  • S. Usai


The main objective of this paper is to assess the role of a large set of factors which potentially relate agglomeration economies to local growth. Such a relationship is analysed thanks to an ample database on the case of Italy which refers to 784 Local Labour Systems and 34 sectors (21 manufacturing and 13 services) over the period 1991-2001. Econometric results show that local growth in Italy is characterized by significant differences across sectors. It is worth mentioning the positive influence of diversity externalities, human and social capital and the negative influence of specialisation externalities and competition. Spatial association is also detected.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200612.

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Date of creation: 2006
Date of revision:
Handle: RePEc:cns:cnscwp:200612
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  17. LAFOURCADE, Miren & MION, Giordano, 2003. "Concentration, spatial clustering and the size of plants : disentangling the sources of co-location externalities," CORE Discussion Papers 2003091, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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