Mapping local productivity advantages in Italy: industrial districts, cities or both?

Valter Di Giacinto, Matteo Gomellini, Giacinto Micucci () and Marcello Pagnini ()
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Giacinto Micucci: Bank of Italy

No 850, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: We compare the magnitude of local productivity advantages associated with two different spatial concentration patterns in Italy � urban areas and industrial districts. The former have high population density and host a wide range of economic activities, while the latter are marked by a high concentration of small firms producing relatively homogenous goods. Using data from a large sample of Italian manufacturing firms observed over the 1995-2006 period, we detect local productivity advantages for both urban areas and industrial districts. However, firms located in urban areas reap a larger productivity premium than those operating within districts. The advantages of industrial districts have declined over time; those of urban areas have remained stable. Differences in the composition of firm employees between white- and blue-collars explain a small fraction of the urban productivity premium. The quantile regressions show how more productive firms gain larger benefits by locating in urban areas. Our analysis raises the question of whether Italian industrial districts are less fit than urban areas to prosper in a world characterized by advancing globalization and the growing use of ICT.

Keywords: urban areas; industrial districts; agglomeration economies; productivity; white- and blue-collars; Italian economy (search for similar items in EconPapers)
JEL-codes: C52 D24 R12 (search for similar items in EconPapers)
Date: 2012-01
New Economics Papers: this item is included in nep-eff, nep-eur, nep-geo, nep-sbm and nep-ure
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Citations: View citations in EconPapers (32)

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Related works:
Journal Article: Mapping local productivity advantages in Italy: industrial districts, cities or both? (2014)
Working Paper: MAPPING LOCAL PRODUCTIVITY ADVANTAGES IN ITALY: INDUSTRIAL DISTRICTS, CITIES OR BOTH? (2011)
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