Identifying the Sources of Local Productivity Growth

Federico Cingano and Fabiano Schivardi

No 474, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: Using firm-level based TFP indicators (as opposed to employment-based proxies) we estimate the effects of alternative sources of dynamic externalities at the local geographic level. Contrary to previous empirical work, we find that industrial specialization and scale indicators positively affect TFP growth at the city-industry level, while we do not find evidence that either the degree of local competition or productive variety impact on subsequent productivity growth. Employment-based regressions yield nearly the opposite results, in line with previous empirical work. We show that such regressions could suffer from serious identification problems when interpreted as evidence of dynamic externalities. This calls into question the conclusions of the existing literature on dynamic agglomeration economies.

Keywords: local growth; productivity; dynamic externalities (search for similar items in EconPapers)
JEL-codes: O47 R11 (search for similar items in EconPapers)
Date: 2003-06
New Economics Papers: this item is included in nep-geo
References: Add references at CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.bancaditalia.it/pubblicazioni/temi-disc ... 0474/tema_474_03.pdf (application/pdf)

Related works:
Journal Article: Identifying the Sources of Local Productivity Growth (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_474_03

Access Statistics for this paper

More papers in Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area Contact information at EDIRC.
Bibliographic data for series maintained by ().