Aiello, Francesco and Pupo, Valeria and Ricotta, Fernanda (2011): Explaining TFP at firm level in Italy. Does location matter?
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This study analyses how firms' internal variables and regional factors affect Total Factor Productivity (TFP) of Italian manufacturing firms. Due to the hierarchical structure of our data, we employ a multilevel model that allows for a clear distinction between firm and region-specific effects. Results refer to 2004-2006 and show, as expected, the importance of firm-specific determinants of TFP. At the same time, they indicate that location matters, in the sense that the context where firms operate plays a crucial role in determining the level of TFP. In more detail, we find that the regional endowment of infrastructure, the efficiency of local administration and the investments in R&D exert a positive effect on firms' performance. We also argue that regional gaps in the endowment of these factors help to understand the dualistic nature of the Italian economy, where a wealthy North coexists with a less developed South.
|Item Type:||MPRA Paper|
|Original Title:||Explaining TFP at firm level in Italy. Does location matter?|
|Keywords:||Manufacturing Firms; Total Factor Productivity, Italian Regional Divide; Multilevel Models|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization ; Manufacturing and Service Industries ; Choice of Technology
L - Industrial Organization > L6 - Industry Studies: Manufacturing > L60 - General
|Depositing User:||Aiello Francesco|
|Date Deposited:||22. Feb 2012 14:31|
|Last Modified:||10. Mar 2015 01:10|
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Explaining TFP at firm level in Italy. Does location matter? (deposited 31. Dec 2011 21:59)
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