IDEAS home Printed from https://ideas.repec.org/p/fce/doctra/1825.html

Regional Alignement and Productivity Growth

Author

Listed:
  • Ludovic Dibiaggio

    (SKEMA Business School, Université Côte d'Azur (GREDEG))

  • Benjamin Montmartin

    (SKEMA Business School, Université Côte d'Azur (GREDEG), OFCE Sciences Po)

  • Lionel Nesta

    (SKEMA Business School, Université Côte d'Azur (GREDEG), OFCE Sciences Po)

Abstract

We propose the concept of regional alignment to suggest that synergistic relations among thescientific expertise, technological specialization and industry composition of regions affect regional productivity growth. In this paper, we test an extended conditional ?-convergence model using data on 94 French departments (NUTS3) for the period 2001-2011. Our results indicate that a conditional ?-convergence is associated with a ?-divergence process in the total factor productivity (TFP) growth of French regions. This process is strongly affected by the level of regional alignment. Indeed, we find evidence that regional alignment both directly and indirectly influences regional productivity growth. The indirect effect of regional alignment materializes through its leverage on R&D investment, which is one of the most important drivers of productivity growth. Moreover, using a heterogeneous coefficients model, we show that the positive effect of regional alignment on TFP growth increases with the industrial diversity of regions, which suggests that regional alignment increases the value of Jacobs externalities more than Marshall-Arrow- Romer (MAR) externalities. Classification-JEL: O30, O40, R11

Suggested Citation

  • Ludovic Dibiaggio & Benjamin Montmartin & Lionel Nesta, 2018. "Regional Alignement and Productivity Growth," Documents de Travail de l'OFCE 2018-25, Observatoire Francais des Conjonctures Economiques (OFCE).
    • Handle: RePEc:fce:doctra:1825
    as

    Download full text from publisher

    File URL: http://www.ofce.sciencespo.fr/pdf/dtravail/OFCEWP2018-25.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fce:doctra:1825. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Francesco Saraceno (email available below). General contact details of provider: https://edirc.repec.org/data/ofcspfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.