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Internal vs. External Firm Productivity Drivers. A Study of the Italian Counties

Author

Listed:
  • Stefano Manzocchi

    (Luiss "Guido Carli")

  • Beniamino Quintieri

    (Università degli Studi di Roma "Tor Vergata")

  • Gianluca Santoni

    (Sant’Anna School of Advanced Studies)

Abstract

We analyse productivity growth differentials across 68.000 Italian manufacturing firms over 2001-2010, in order to disentangle internal and external productivity drivers. A two-stage procedure is implemented for extracting fixed effects for 103 home counties of the firms (stage one), and regressing them upon a number of external factors that could affect productivity dynamics (stage two). We find that the local environment matters for firm performance with external drivers, such as financial conditions, social capital and market potential, explaining about two-thirds of the cross-county productivity dispersion.

Suggested Citation

  • Stefano Manzocchi & Beniamino Quintieri & Gianluca Santoni, 2014. "Internal vs. External Firm Productivity Drivers. A Study of the Italian Counties," Working Papers CELEG 14112, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    • Handle: RePEc:lui:celegw:14112
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    Citations

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    Cited by:

    1. Lidia Mannarino & Valeria Pupo & Fernanda Ricotta, 2016. "Family Firms and Productivity: The Role of Institutional Quality," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(10), pages 343-343, September.
    2. Fernanda Ricotta, 2019. "The Quality of Regional Government and Firm Performance," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(2), pages 27-40, February.

    More about this item

    Keywords

    total factor productivity; external effects; local manufacturing dynamics.;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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