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How Provincial is your Region? Effects on Labour Productivity and Employment in Europe

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  • Alfonso Gambardella
  • Myriam Mariani
  • Salvatore Torrisi

Abstract

This paper estimates the determinants of labour productivity in European NUTS regions during 1989-1996. We compare three potential explanations of regional advantages: Technological capabilities (proxied by regional patents), agglomeration economies (employment density), and openness. To study the latter we use the number of airplane passengers embarked and disembarked in the region, and found that this is a meaningful index for the openness of the regions. By using instrumental variables, we confirm existing results that patents and employment density affect labour productivity. Our novel finding is that openness affects labour productivity as well.

Suggested Citation

  • Alfonso Gambardella & Myriam Mariani & Salvatore Torrisi, 2003. "How Provincial is your Region? Effects on Labour Productivity and Employment in Europe," LEM Papers Series 2003/06, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2003/06
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    Cited by:

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    3. Nune Hovhannisyan & Wolfgang Keller, 2015. "International business travel: an engine of innovation?," Journal of Economic Growth, Springer, vol. 20(1), pages 75-104, March.
    4. Fagiolo, Giorgio & Santoni, Gianluca, 2015. "Human-mobility networks, country income, and labor productivity," Network Science, Cambridge University Press, vol. 3(3), pages 377-407, September.

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