Firm Heterogeneity and Endogenous Regional Disparities

Carlo Altomonte () and Italo Colantone

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: We exploit the census of Romanian firms to provide a microfounded analysis of the sources of regional disparities in the country. To this extent, we adapt to the regional case a decomposition of firm-level output dynamics based on semi-parametric productivity estimates. The methodology, robust to different techniques of TFP estimation, allows us to analyze the sources of regional disparities controlling for the heterogeneity in firms?characteristics. In particular, we measure various compositional effects of multinational enterprises (MNEs)on regional growth, finding that regional disparities are to a large extent endogenous to the interaction between firm-level dynamics and initial market conditions.

Keywords: regional convergence; multinational firms; productivity; transition economies. (search for similar items in EconPapers)
JEL-codes: F12 F23 L10 P20 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2005
New Economics Papers: this item is included in nep-eff, nep-geo and nep-tra
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http://www.econ.kuleuven.be/licos/publications/dp/dp161.pdf

Related works:
Journal Article: Firm heterogeneity and endogenous regional disparities (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:lic:licosd:16105

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