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Homogeneous, Urban Heterogeneous, or both? External Economies and Regional Manufacturing Productivity in Europe


  • Bruno Bracalente
  • Cristiano Perugini
  • Fabrizio Pompei


The objective of this paper is to analyse theoretically and empirically the effects of sectoral homogeneity and urban heterogeneity on regional manufacturing “pure” productivity differentials. Hypotheses of the existence and co-existence of the two types of external effects are formulated and tested for the regions of 13 Western EU countries by means of panel data spatial econometric techniques. The outcomes clearly support our conjectures and also reveal how a simply strong manufacturing sector, i.e., not accounting for internal specialisation, may be harmful to productivity. This result, and the existence of heterogeneous externalities, are confirmed for a sample of regions extended to Eastern European countries.

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  • Bruno Bracalente & Cristiano Perugini & Fabrizio Pompei, 2008. "Homogeneous, Urban Heterogeneous, or both? External Economies and Regional Manufacturing Productivity in Europe," Quaderni del Dipartimento di Economia, Finanza e Statistica 51/2008, Università di Perugia, Dipartimento Economia.
  • Handle: RePEc:pia:wpaper:51/2008

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    References listed on IDEAS

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    Cited by:

    1. Mirella Damiani, 2010. "Labour regulation, corporate governance and varieties of capitalism," Quaderni del Dipartimento di Economia, Finanza e Statistica 76/2010, Università di Perugia, Dipartimento Economia.
    2. Stefano Herzel & Marco Nicolosi & Cătălin Stărică, 2012. "The cost of sustainability in optimal portfolio decisions," The European Journal of Finance, Taylor & Francis Journals, vol. 18(3-4), pages 333-349, May.
    3. Damiani, Mirella & Pompei, Fabrizio & Ricci, Andrea, 2011. "Temporary job protection and productivity growth in EU economies," MPRA Paper 29698, University Library of Munich, Germany.
    4. Davide Castellani & Fabio Pieri, 2011. "Foreign Investments and Productivity Evidence from European Regions," Quaderni del Dipartimento di Economia, Finanza e Statistica 83/2011, Università di Perugia, Dipartimento Economia.
    5. Silvia Micheli, 2010. "Learning Curve and Wind Power," Quaderni del Dipartimento di Economia, Finanza e Statistica 81/2010, Università di Perugia, Dipartimento Economia.
    6. Francesco Venturini, 2011. "Product variety, product quality, and evidence of Schumpeterian endogenous growth: a note," Quaderni del Dipartimento di Economia, Finanza e Statistica 93/2011, Università di Perugia, Dipartimento Economia.

    More about this item


    homogeneous and urban heterogeneous external economies; manufacturing productivity; EU regions;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure


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