Agglomeration economies and growth-The case of Italian local labour systems, 1991-2001

Raffaele Paci () and Stefano Usai ()

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract:

The main objective of this paper is to assess the role of a large set of factors which potentially relate agglomeration economies to local growth. Such a relationship is analysed thanks to an ample database on the case of Italy which refers to 784 Local Labour Systems and 34 sectors (21 manufacturing and 13 services) over the period 1991-2001. Econometric results show that local growth in Italy is characterized by significant differences across sectors. It is worth mentioning the positive influence of diversity externalities, human and social capital and the negative influence of specialisation externalities and competition. Spatial association is also detected.

Keywords: Agglomeration externalities; Local growth; Spatial dependence; Italy. (search for similar items in EconPapers)
JEL-codes: L60 O52 R11 R12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-soc and nep-ure
Date: 2006
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Persistent link: http://EconPapers.repec.org/RePEc:cns:cnscwp:200612

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