Determinants of long-run regional productivity: the role of R&D, human capital and public infrastructure

Raffaello Bronzini () and Paolo Piselli

No 597, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: In this paper we estimate the long-run relationship between regional total factor productivity, R&D, human capital and public infrastructure between 1980 and 2001. We take advantage of recent developments panel cointegration techniques that control for endogeneity of regressors to estimate cointegration vectors. Empirical evidence shows that there exists a long-run equilibrium between productivity level and the three kinds of capital; among them, human capital turns out to have the strongest impact on productivity. Regional productivity is found also to be positively affected by R&D activity and public infrastructure of neighbouring regions. Finally, results of the Granger-causality tests support the hypothesis that human capital and infrastructure Granger-cause productivity in the long-run while the opposite is not true; only for R&D stock is the bi-directional causality found.

Keywords: Total factor productivity; research and development; public infrastructure; human capital; panel cointegration (search for similar items in EconPapers)
JEL-codes: C23 O18 O4 R11 (search for similar items in EconPapers)
Date: 2006-09
New Economics Papers: this item is included in nep-eff, nep-geo and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_597_06

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