Do High-Quality Local Institutions Shape Labour Productivity in Western European Manufacturing Firms?

Rodríguez-Pose, Andrés and Roberto Ganau
Authors registered in the RePEc Author Service: Andrés Rodríguez-Pose

No 13703, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We investigate the extent to which regional institutional quality shapes firm labour productivity in western Europe, using a sample of manufacturing firms from Austria, Belgium, France, Germany, Italy, Portugal and Spain, observed over the period 2009-2014. The results indicate that regional institutional quality positively affects firms' labour productivity and that government effectiveness is the most important institutional determinant of productivity levels. However, how institutions shape labour productivity depends on the type of firm considered. Smaller, less capital endowed and high-tech sectors are three of the types of firms whose productivity is most favourably affected by good and effective institutions at the regional level.

Keywords: Regional institutions; Manufacturing firms; Labour productivity; Western europe; Cross-country analysis (search for similar items in EconPapers)
JEL-codes: C23 D24 H41 R12 (search for similar items in EconPapers)
Date: 2019-04
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eec, nep-eff, nep-eur, nep-geo, nep-sbm, nep-tid and nep-ure
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Citations: View citations in EconPapers (31)

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Related works:
Journal Article: Do high‐quality local institutions shape labour productivity in Western European manufacturing firms? (2019)
Working Paper: Do high-quality local institutions shape labour productivity in Western European manufacturing firms? (2019)
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