Business change in Italian regions. A spatial shift-share approach to plant-level data

Giuseppe Espa (), Danila Filipponi, Diego Giuliani and Davide Piacentino

No 1205, Department of Economics Working Papers from Department of Economics, University of Trento, Italia

Abstract: In this paper, a shift-share decomposition analysis of business change at plant-level is applied to Italian regions with reference to the period 2004-2009. In particular, a spatial version of shift-share analysis allows to look not only at the national, industrial mix and regional-shift components, as in traditional approaches, but also at the neighbourhood effect. Additionally, we introduce a novel spatial decomposition which is able to conclude more effectively on the neighbourhood influence. Moreover, the micro-level nature of data allows us to analyse the neighbourhood effect at different spatial levels of aggregation (NUTS-2 and NUTS-3 regions). Some results are worth mentioning. First, the spatial level of aggregation affects heavily the results. Second, we find evidence of neighbourhood advantage in the Southern NUTS-3 regions and opposite results for the Central-Northern NUTS-3 regions. Third, we find evidence of positive industrial mix effects only in the Centre-North of Italy. Finally, results obtained over a shorter time span 2004-2007 confirm our conclusions

Keywords: Business change; Spatial shift-share; Plant-level data; Italian regions (search for similar items in EconPapers)
JEL-codes: C21 L26 R12 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-eur, nep-geo and nep-ure
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