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Firm productivity and institutional quality. Evidence from Italian industry

Andrea Lasagni (), Annamaria Nifo () and Gaetano Vecchione ()

No 2012-EP07, Economics Department Working Papers from Department of Economics, Parma University (Italy)

Abstract: This paper aims at contributing to the debate on the determinants of differentials in firms’ productivity. The case of Italy looks particularly interesting, since it is characterized by a substantial and long-lasting productivity gap of industrial firms located in the Southern regions with respect to the rest of the country. We test the hypothesis that the macro factors, particularly the quality of institutions, play a central role in explaining Italian firms’ productivity. Consistent with previous studies, our results show that institutional quality is one of the basic determinants of the observed TFP differentials across firms located in different Italian regions.

Keywords: productivity; macroeconomic factors; institutional quality; differentials (search for similar items in EconPapers)
JEL-codes: C33 D24 L60 O43 R11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff and nep-eur
Date: 2012
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Related works:
Journal Article: FIRM PRODUCTIVITY AND INSTITUTIONAL QUALITY: EVIDENCE FROM ITALIAN INDUSTRY (2015) Downloads
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