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Do high-quality local institutions shape labour productivity in Western European manufacturing firms?

Roberto Ganau and Andrés Rodríguez-Pose

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We investigate the extent to which regional institutional quality shapes firm labour productivity in Western Europe, using a sample of manufacturing firms from Austria, Belgium, France, Germany, Italy, Portugal and Spain, observed over the period 2009–2014. The results indicate that regional institutional quality positively affects firms' labour productivity and that government effectiveness is the most important institutional determinant of productivity levels. However, how institutions shape labour productivity depends on the type of firm considered. Smaller, less capital endowed and high-tech sectors are three of the types of firms whose productivity is most favourably affected by good and effective institutions at the regional level.

Keywords: cross-country analysis; labour productivity; manufacturing firms; regional institutions; Western Europe (search for similar items in EconPapers)
JEL-codes: C23 D24 H41 R12 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2019-08-01
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-geo, nep-sbm and nep-ure
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Citations: View citations in EconPapers (23)

Published in Papers in Regional Science, 1, August, 2019, 98(4), pp. 1633-1666. ISSN: 1056-8190

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http://eprints.lse.ac.uk/100416/ Open access version. (application/pdf)

Related works:
Journal Article: Do high‐quality local institutions shape labour productivity in Western European manufacturing firms? (2019) Downloads
Working Paper: Do High-Quality Local Institutions Shape Labour Productivity in Western European Manufacturing Firms? (2019) Downloads
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