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A spatial multilevel analysis of Italian SMEs Productivity

  • Giorgio Fazio
  • Davide Piacentino

In this paper, we adapt multilevel analysis methods to investigate the spatial variability of SMEs productivity across the Italian territory, and account for differences in the socio-economic context. Our results suggest that to properly capture the variability of the data, it is important to allow for both spatial mean and slope effects. Social decay has the expected negative impact. However, while this effect is larger on firms with smaller capital intensity, firms with higher capital intensity seem to be less affected by geography. Greater territorial heterogeneity emerges among those firms with lower capital to labour ratios.

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Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2009_31.

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Date of creation: Jun 2009
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Handle: RePEc:gla:glaewp:2009_31
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  1. Andrés Rodríguez-Pose, 2010. "Do institutions matter for regional development?," Working Papers 2010-02, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  2. I.P. Ottaviano, Gianmarco, 2008. "Infrastructure and economic geography: An overview of theory and evidence," EIB Papers 6/2008, European Investment Bank, Economics Department.
  3. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
  4. Rodriguez-Pose, Andres, 1998. "Dynamics of Regional Growth in Europe: Social and Political Factors," OUP Catalogue, Oxford University Press, number 9780198233831, March.
  5. Elena Bontempi & Roberto Golinelli & Giuseppe Parigi, 2007. "Why demand uncertainty curbs investment: Evidence froma a panel of Italian manufacturing firms," Temi di discussione (Economic working papers) 621, Bank of Italy, Economic Research and International Relations Area.
  6. Joseph Byrne & Giorgio Fazio & Davide Piacentino, 2009. "Total Factor Productivity Convergence among Italian Regions: Some Evidence from Panel Unit Root Tests," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 63-76.
  7. Luigi Guiso & Fabiano Schivardi, 2007. "Spillovers in Industrial Districts," Economic Journal, Royal Economic Society, vol. 117(516), pages 68-93, 01.
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