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Spatial externalities and empirical analysis: the case of Italy

  • Giordano Mion

This paper aims at assessing the role of market linkages in shaping the spatial distribution of earnings. Using a space-time panel data on Italian provinces, I structurally estimate a NEG model in order to both test the coherence of theory with data, as well as to give a measure of the extent of spatial externalities. Particular attention has been paid to those endogeneity issues that arise when dealing with both structural models and spatial data. Results suggest that final demand linkages influence the location of economic activities and that their spread over space is, contrary to previous findings, not negligible.

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File URL: http://eprints.lse.ac.uk/42663/
File Function: Open access version.
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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 42663.

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Date of creation: 19 May 2004
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Publication status: Published in Journal of Urban Economics, 19, May, 2004, 56(1), pp. 97-118. ISSN: 0094-1190
Handle: RePEc:ehl:lserod:42663
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