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Firm productivity and institutional quality. Evidence from Italian industry

  • A. Lasagni

    ()

  • A. Nifo

    ()

  • G. Vecchione

    ()

This paper aims at contributing to the debate on the determinants of differentials in firms’ productivity. The case of Italy looks particularly interesting, since it is characterized by a substantial and long-lasting productivity gap of industrial firms located in the Southern regions with respect to the rest of the country. We test the hypothesis that the macro factors, particularly the quality of institutions, play a central role in explaining Italian firms’ productivity. Consistent with previous studies, our results show that institutional quality is one of the basic determinants of the observed TFP differentials across firms located in different Italian regions.

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File URL: http://swrwebeco.econ.unipr.it/RePEc/pdf/I_2012-07.pdf
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Paper provided by Department of Economics, Parma University (Italy) in its series Economics Department Working Papers with number 2012-EP07.

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Length: 45 pages
Date of creation: 2012
Date of revision:
Handle: RePEc:par:dipeco:2012-ep07
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