Sources of productivity differentials in manufacturing in post-transition urban South-East Europe

Katarina Bačić, Ivana Rašić Bakarić and Sunčana Slijepčević

Post-Communist Economies, 2018, vol. 30, issue 4, 526-548

Abstract: The paper analyses the effects of urbanization and localisation economies on manufacturing firms’ productivity across urban landscapes in post-transition South-East European (SEE) countries. Fixed-effects panel data estimations on a large sample of firms show that the factors accounting for productivity advantages of manufacturing firms in urban post-transition SEE are related to the firms and to the environment in which these firms operate. Firms located in diversified cities benefit from a productivity premium generated in this type of agglomeration, while no evidence was found that the relative specialization across industries has any effect on firm productivity levels.

Date: 2018
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DOI: 10.1080/14631377.2018.1443249

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