Aiello, Francesco and Pupo, Valeria and Ricotta, Fernand (2011): Explaining TFP at firm level in Italy. Does location matter?
Download (103kB) | Preview
This study considers how firms’ internal variables and regional factors affect the total factor productivity of Italian manufacturing firms. Due to of the hierarchical structure of data in estimation, we employ a multilevel model. Results, which refer to 2006, show the importance of firm-specific determinants of TFP, but at the same time confirm the role of regional context in explaining the gap in TFP levels which exist between the South and the North of Italy. In this respect, we show that northern firms are localised in regions with adequate endowment of infrastructure, with efficient public administration and with high R&D intensity and, as a result of these factors, perform better than firms operating in less well endowed regions.
|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:||31. Dec 2011 21:59|
|Last Modified:||20. Feb 2013 15:37|
Aiello F., Scoppa V. (2000), Uneven regional development in Italy: explaining differences in productivity levels, Giornale degli Economisti 60, 270–298.
Aiello F., Iona A., Leone L. (2010), Regional Infrastructure and Firm Investment. Theory and Empirical Evidence for Italy, Empirical Economics, DOI 10.1007/s00181-010-0445-9.
Aiello F., Pupo V. (2011), Structural Funds and the Economic Divide in Italy”, Journal of Policy Modeling (2011), doi:10.1016/j.jpolmod.2011.10.006.
Aiello F., Pupo V., Ricotta F. (2009), Sulla dinamica della Produttività Totale dei Fattori in Italia. Un’analisi settoriale”, l’industria – Rivista di economia e politica industriale, n. 3, pp. 405-426.
Ascari G., Di Cosmo V. (2005), Determinants of total factor productivity in the Italian regions, Scienze Regionali – Italian Journal of Regional Science 4, 27–49.
Bank of Italy (2009), Rapporto sulle tendenze nel sistema produttivo italiano, Questioni di Economia e Finanza, n. 45.
Benfratello L., Razzolini T. (2008), Firms’ productivity and internationalisation choices: evidence for a large sample of manufacturing firms in Multinationals and local competitiveness, Lucia Piscitello and Grazia Santangelo (Eds.), Franco Angeli
Bickel R. (2007), Multilevel Analysis for Applied Research, It’s Just Regression!, The Guilford Press, New York.
Brandolini A., Cipollone P. (2001), Multifactor productivity and Labour Quality in Italy, 1981-2000, in Temi di Discussione, n. 422, Bank of Italy.
Byrne J. P., Fazio G., Piacentino D. (2009), Total Factor Productivity convergence among Italian Regions: Some evidence from panel unit root tests, Regional Studies, 43:1, 63-76.
Camagni R. (1991), Innovation Networks: Spatial Pespectives (eds), Belhaven Press, London.
Carey J.P.C , Galbraith C. A. (1955), The South of Italy and the Cassa per il Mezzogiorno, Political Research Quarterly, December 1955 8: 569-588.
Castellani, D. (2002), Export behaviour and productivity growth: evidence from Italian manufacturing firms, Weltwirtschaftliches Archiv, vol. 138, pp. 605–28.
Ciccone A., Hall R.E. (1993), Productivity and the Density of Economic Activity, American Economic Review, 86: 54-70.
Cingano F., Schivardi F. (2004), Identifying the sources of local productivity growth, Journal of the European Economic Association, 2(4): 720-742.
Daveri F., Jona Lasinio C. (2005), Italy’s decline: getting the facts right, in “Giornale degli Economisti e Annali di Economia”, vol. 64, n. 4, pp. 365-410.
Destefanis S., Sena V. (2005), Public capital and total factor productivity: New evidence from the Italian regions, 1970-98, Regional Studies, 39, 5, pp. 603-617.
Easterly W., Levine R. (2001), It’s not factor accumulation: stylized facts and growth models, World Bank Economic Review, 15, 177–219.
Eckaus R. (1961), The North-South differential in Italian economic development. Journal of Economic History 20: 285–317.
Golden M.A, Picci L. (2004), Proposal for a New Measure of Corruption, Illustrated Italian Data, mimeo, UCLA, downloadable at http://golden.polisci.ucla.edu.
Goldstein H. (2003), Multilevel Statistical Models, London, Arnold.
Griliches, Z. (2000), R&D, Education and Productivity A Retrospective. Harvard University Press, Cambridge, Massachusetts.
Hall R., Jones C. (1999), Why do some countries produce so much more output per workers than others?, Quarterly Journal of Economics 114, 83–116.
Hox, J.J. (1995), Applied Multilevel Analysis, TT-Publikaties, Amsterdam
ISGEP, International Study Group on Exports and Productivity (2008), Understanding Cross-Country Differences in Exporter Premia: Comparable Evidence for 14 Countries, Review of World Economics, Volume 144, Issue: 4, December 2008, pp. 596 – 635.
ISTAT (2005), Conti Economici Regionali, 1980-2004, Rome.
ISTAT (2007), Misure di produttività, in Statistiche in breve, 5 ottobre, Roma.
ISTAT (2010), Conti Economici Regionali, 1995-2009, Rome.
Iuzzolino G., Pellegrini G. Viesti G. (2011), Convergence among Italian Regions, 1861-2011, Bank of Italy, Economic History Working Papers, n. 22.
Klenow P. J., Rodriguez-Clare A. (1997), The neoclassical revival in growth economics: has it gone too far?, in BERNANKE B. and ROTEMBERG J. (Eds) NBER Macroeconomics Annual, pp. 73–103. MIT Press, Cambridge, MA.
Krueger A.B., Lindahl M. (2001), Education for Growth; Why and for Whom? Journal of Economic Literature, 39, 4, pp. 1101-1136.
Krugman P. (1991), Geography and Trade, Cambridge University Press.
Ladu M. G. (2010), Total factor productivity estimates: some evidence from European regions, WIFO Working Papers, 380.
Luke A. (2004), Multilevel Modelling. London: Sage Publications
Marrocu E., Paci R. (2010), The effects of public capital on the productivity of Italian regions, Applied Economics, 42, 989-1002.
Melitz M. J. (2003), The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica 71 (6): 1695–1725.
OECD (2007), Economic Survey: Italy, OECD, Parigi.
Onida F. (2004), Se il piccolo non cresce. Piccole e medie imprese in affanno, Il Mulino, Bologna.
Parente, S., Prescott E. (2004), A unified theory of the evolution of international income levels, Federal Reserve Bank of Minneapolis Staff Reports, 333.
Parisi M. L., Schiantarelli F., Sembenelli A. (2006), Productivity, Innovation and R&D: Micro Evidence for Italy, European Economic Review, 50(8), pp. 2037-2061.
Piacentino D. (2008), Productivity, Infrastructures and Convergence: Panel Data Evidence on Italian Regions, Scienze-Regionali/Italian-Journal-of-Regional-Science, 7(2): 5-26.
Prescott E. (1998), Needed: a theory of total factor productivity, International Economic Review, 39, 525-551.
Quatraro F. (2006), Technological change and productivity growth in Italian regions, 1982-2001, Région ed Développement, n.24.
Rabe-Hesketh S., Skrondal A. (2008), Multilevel and Longitudinal Modeling Using Stata. Stata Press, 2nd edition.
Raspe O., Van Oort F. (2011), Firm heterogeneity, productivity and spatially bounded knowledge externalities, Socio-Economic Planning Sciences, 45, 38-47;
Serti F., Tomasi C. (2008), Self-Selection and Post-Entry Effects of Exports: Evidence from Italian Manufacturing Firms, Review of World Economics, Volume 144, Issue: 4, December, pp. 660 – 694.
Sveikauskas L. (2007), R&D and Productivity Growth: a Review of the Literature, US Bureau of Labour Statistics, BLS Working Papers n. 208.
Tabellini G. (2010), Culture and Institutions: Economic Development in the Regions of Europe, Journal of the European Economic Association, 8, 4, 677-716.
UniCredit-Capitalia (2008), Decima indagine sulle imprese manifatturiere italiane. Rapporto Corporate, n.1.
Van Ark B., O’Mahony M., Ypma G. (2007), Productivity in the European Union: A comparative Industry Approach, in “The EU KLEMS Productivity Report”, n. 1
Available Versions of this Item
- Explaining TFP at firm level in Italy. Does location matter? (deposited 31. Dec 2011 21:59) [Currently Displayed]