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Agglomeration economies: new evidence on IT employment growth in Italy

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  • A. Lasagni

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Abstract

This paper uses Local Labour Market Areas (LLMA) data to investigate the dynamics of employment in the Information Technology (IT) sector in Italy 2001-2005. Adopting the framework suggested by Glaeser et al. (1992) and Combes (2000), the aim is to test if agglomeration forces might significantly affect IT local growth. The basic OLS results are broadly consistent with those of earlier studies. In particular, IT employment growth is enhanced by industrial diversity (Jacobs externalities) and by plant size (economies of scale). At the same time, LLMAs with higher IT concentration are associated with lower employment growth rates. As a robustness check, quantile regression analysis is performed. This additional set of results reaveals that the role of agglomeration forces is different across IT growth levels.

Suggested Citation

  • A. Lasagni, 2009. "Agglomeration economies: new evidence on IT employment growth in Italy," Economics Department Working Papers 2009-EP08, Department of Economics, Parma University (Italy).
  • Handle: RePEc:par:dipeco:2009-ep08
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    References listed on IDEAS

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    1. Giacinto Micucci & Valter di Giacinto, 2009. "The Producer Service Sector in Italy: Long-term Growth and its Local Determinants," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(4), pages 391-425.
    2. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
    3. Koenker,Roger, 2005. "Quantile Regression," Cambridge Books, Cambridge University Press, number 9780521845731.
    4. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    5. Combes, Pierre-Philippe, 2000. "Economic Structure and Local Growth: France, 1984-1993," Journal of Urban Economics, Elsevier, vol. 47(3), pages 329-355, May.
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    7. Andrea Bonaccorsi & Lucia Piscitello & Cristina Rossi, 2007. "Explaining the Territorial Adoption of New Technologies: A Spatial Econometric Approach," Chapters,in: Applied Evolutionary Economics and Economic Geography, chapter 12 Edward Elgar Publishing.
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    9. Federico Cingano & Fabiano Schivardi, 2004. "Identifying the Sources of Local Productivity Growth," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 720-742, June.
    10. Mario Forni & Sergio Paba, 2000. "The Sources of Local Growth: Evidence from Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 59(1), pages 1-49, April.
    11. Fabio Sforzi & Andrea Lasagni, 2008. "Le determinanti dello sviluppo locale di attività ICT in Italia," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2008(1), pages 155-167.
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    More about this item

    Keywords

    agglomeration economies; information technology; LLMA; Italy; quantile regression;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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