IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Explaining labor productivity differentials on Italian regions

  • Valter Di Giacinto

    ()

  • Giorgio Nuzzo

    ()

Labor productivity convergence is a key factor in the catching up process of less developed regions. For the regional economies as a whole labor productivity differentials can be traced back to three distinct determinants: - composition effects due to the peculiar structure of the regional economy; a lower than average productivity level could, for instance, be due to the fact that a greater share or the regional labor force is employed in sectors that are denoted by lower productivity at the aggregate level; - different regional endowments, within each given industry, of physical and human capital per worker; - differing levels of total factor productivity (TFP). The study aims at explaining substantial and persistent regional differentials in labor productivity in Italy providing: 1. an assessment of the role played by the three factors above outlined in the variuos regions; 2. an empirical evaluation of the role played by some of the relevant factors suggested in the related literature (e.g., public and social capital, R&D expenditure, international openness, financial markets development, agglomeration and diversification economies, geographic factors), in explaining regional TFP differentials. The empirical analysis makes use of a particularly rich data set including annual regional accounts and capital stock data for 17 industries covering the period 1970-1994. Estimates of human capital broken down by region and industry are produced by the authors pooling information from the Labor force survey and Bank of Italy’s Survey of households income and wealth. The analysis of structural composition effects is carried out by means of the shift-share technique proposed by Esteban (2000), while a cointegrated panel model is used to estimate total factor productivity by region and sector. In an attempt to assess the relevance of spatial externalities in explaining regional TFP levels the final regression analysis makes use of spatial econometric techniques.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa04/PDF/105.pdf
Download Restriction: no

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p105.

as
in new window

Length:
Date of creation: Aug 2004
Date of revision:
Handle: RePEc:wiw:wiwrsa:ersa04p105
Contact details of provider: Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.ersa.org

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Alessandro Arrighetti & Andrea Lasagni & Gilberto Seravalli, 2003. "Capitale sociale, associazionismo economico e istituzioni: indicatori statistici di sintesi," Rivista di Politica Economica, SIPI Spa, vol. 93(4), pages 47-88, July-Augu.
  2. Daron Acemoglu & Fabrizio Zilibotti, 2001. "Productivity Differences," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 563-606, May.
  3. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
  4. Federico Bonaglia & Eliana La Ferrara & Massimiliano Marcellino, . "Public Capital and Economic Performance: Evidence from Italy," Working Papers 163, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  5. Esteban, J., 2000. "Regional convergence in Europe and the industry mix: a shift-share analysis," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 353-364, May.
  6. Ottaviano, Gianmarco & Puga, Diego, 1997. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," CEPR Discussion Papers 1699, C.E.P.R. Discussion Papers.
  7. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2000. "The Role of Social Capital in Financial Development," NBER Working Papers 7563, National Bureau of Economic Research, Inc.
  8. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output Per Worker Than Others?," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 83-116, February.
  9. William Easterly & Michael Kremer & Lant Pritchett & Lawrence H. Summers, 1993. "Good Policy or Good Luck? Country Growth Performance and Temporary Shocks," NBER Working Papers 4474, National Bureau of Economic Research, Inc.
  10. R. Paci, 1996. "More similar and less equal. Economic growth in the European regions," Working Paper CRENoS 199609, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  11. Miriam A. Golden & Lucio Picci, 2005. "Proposal For A New Measure Of Corruption, Illustrated With Italian Data," Economics and Politics, Wiley Blackwell, vol. 17, pages 37-75, 03.
  12. Eckaus, Richard S., 1961. "The North-South Differential In Italian Economic Development," The Journal of Economic History, Cambridge University Press, vol. 21(03), pages 285-317, September.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa04p105. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.