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Business change in Italian regions. A spatial shift-share approach to plant-level data

Author

Listed:
  • Giuseppe Espa
  • Danila Filipponi
  • Diego Giuliani
  • Davide Piacentino

Abstract

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

Suggested Citation

  • Giuseppe Espa & Danila Filipponi & Diego Giuliani & Davide Piacentino, 2012. "Business change in Italian regions. A spatial shift-share approach to plant-level data," Department of Economics Working Papers 1205, Department of Economics, University of Trento, Italia.
    • Handle: RePEc:trn:utwpde:1205
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    References listed on IDEAS

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    More about this item

    Keywords

    Business change; Spatial shift-share; Plant-level data; Italian regions;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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