Business change in Italian regions. A spatial shift-share approach to plant-level data
In this paper, a shift-share decomposition analysis of business change at plant-level is applied to Italian regions with reference to the period 2004-2009. In particular, a spatial version of shift-share analysis allows to look not only at the national, industrial mix and regional-shift components, as in traditional approaches, but also at the neighbourhood effect. Additionally, we introduce a novel spatial decomposition which is able to conclude more effectively on the neighbourhood influence. Moreover, the micro-level nature of data allows us to analyse the neighbourhood effect at different spatial levels of aggregation (NUTS-2 and NUTS-3 regions). Some results are worth mentioning. First, the spatial level of aggregation affects heavily the results. Second, we find evidence of neighbourhood advantage in the Southern NUTS-3 regions and opposite results for the Central-Northern NUTS-3 regions. Third, we find evidence of positive industrial mix effects only in the Centre-North of Italy. Finally, results obtained over a shorter time span 2004-2007 confirm our conclusions
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- Davide Piacentino & Erasmo Vassallo, 2011. "Exploring the sources of labour productivity growth and convergence in the Italian regions: some evidence from a production frontier approach," The Annals of Regional Science, Springer, vol. 46(2), pages 469-486, April.
- Shaoming Cheng, 2011. "Business cycle, industrial composition, or regional advantage? A decomposition analysis of new firm formation in the United States," The Annals of Regional Science, Springer, vol. 47(1), pages 147-167, August.
- Matías Mayor & Ana López, 2008. "Spatial shift-share analysis versus spatial filtering: an application to Spanish employment data," Empirical Economics, Springer, vol. 34(1), pages 123-142, February.
- Suahasil Nazara & Geoffrey J.D. Hewings, 2004. "Spatial Structure and Taxonomy of Decomposition in Shift-Share Analysis," Growth and Change, Wiley Blackwell, vol. 35(4), pages 476-490.
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