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Spatial agglomeration, global value chains, and productivity: micro-evidence from Italy and Spain

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  • Cainelli, Giulio
  • Ganau, Roberto
  • Giunta, Anna

Abstract

We investigate the relationship between spatial agglomeration and firms’ labor productivity in Italy and Spain, examining firm-level heterogeneity in Global Value Chain positioning. We analyze a sample of 4, 025 manufacturing firms during the period from 2010 to 2014 and employ a shift-share instrumental variable approach. We find that agglomeration has a positive effect on labor productivity for suppliers but not for final firms.

Suggested Citation

  • Cainelli, Giulio & Ganau, Roberto & Giunta, Anna, 2018. "Spatial agglomeration, global value chains, and productivity: micro-evidence from Italy and Spain," LSE Research Online Documents on Economics 87912, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:87912
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    File URL: https://researchonline.lse.ac.uk/id/eprint/87912/
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    References listed on IDEAS

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    5. de Blasio, Guido & Maggio, Giuseppe & Menon, Carlo, 2016. "Down and out in Italian towns: Measuring the impact of economic downturns on crime," Economics Letters, Elsevier, vol. 146(C), pages 99-102.
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    Cited by:

    1. Cainelli, Giulio & Ganau, Roberto & Giunta, Anna, 2022. "Business groups, institutions, and firm performance," LSE Research Online Documents on Economics 114553, London School of Economics and Political Science, LSE Library.
    2. R. Boschma & Eduardo Hernández-Rodríguez & A. Morrison & C. Pietrobelli, 2021. "Do global value chains and local capabilities matter for economic complexity in EU regions?," Papers in Evolutionary Economic Geography (PEEG) 2139, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2021.
    3. Lei Luo & Zhenhua Zheng & Jing Luo & Yuqiu Jia & Qi Zhang & Chun Wu & Yifeng Zhang & Jia Sun, 2020. "Spatial Agglomeration of Manufacturing in the Wuhan Metropolitan Area: An Analysis of Sectoral Patterns and Determinants," Sustainability, MDPI, vol. 12(19), pages 1-23, September.
    4. Wenxiao WANG & Shandre THANGAVELU, 2024. "Urban Agglomeration, Firm Performance, and Global Value Chain in China," Working Papers DP-2024-14, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Nenci, Silvia & Fusacchia, Ilaria & Giunta, Anna & Montalbano, Pierluigi & Pietrobelli, Carlo, . "Mapping global value chain participation and positioning in agriculture and food: stylised facts, empirical evidence and critical issues," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2).
    6. Bhushan Praveen Jangam & Badri Narayan Rath, 2021. "Do global value chains enhance or slog economic growth?," Applied Economics, Taylor & Francis Journals, vol. 53(36), pages 4148-4165, August.
    7. A. Giunta & P. Montalbano & S. Nenci, 2022. "Consistency of micro- and macro-level data on global value chains: Evidence from selected European countries," International Economics, CEPII research center, issue 171, pages 130-142.
    8. Bhushan P Jangam & Vaseem Akram, 2019. "Does participation in global value chain foster export concentration?," Economics Bulletin, AccessEcon, vol. 39(4), pages 2913-2920.
    9. Dong Feng & Jian Li & Xintao Li & Zaisheng Zhang, 2019. "The Effects of Urban Sprawl and Industrial Agglomeration on Environmental Efficiency: Evidence from the Beijing–Tianjin–Hebei Urban Agglomeration," Sustainability, MDPI, vol. 11(11), pages 1-12, May.
    10. Chenxi Li & Kening Wu & Xiangyu Gao, 2020. "Manufacturing industry agglomeration and spatial clustering: Evidence from Hebei Province, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 2941-2965, April.
    11. Upalat Korwatanasakul & Tran Thi Hue, 2022. "Global Value Chain Participation and Labour Productivity in Manufacturing Firms in Viet Nam: Firm-Level Panel Analysis," Working Papers DP-2022-34, Economic Research Institute for ASEAN and East Asia (ERIA).
    12. Linzhuo Li & Nannan Zhao, 2023. "Understanding urban concentration of complex manufacturing activities in China," PLOS ONE, Public Library of Science, vol. 18(3), pages 1-15, March.
    13. Dolores Añon Higón & Ionnanis Bournakis, 2024. "Global Value Chains (GVCs) participation and Markups," Working Papers 2403, Department of Applied Economics II, Universidad de Valencia.

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    Keywords

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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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