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Homogeneous, Urban Heterogeneous, or both? External Economies and Regional Manufacturing Productivity in Europe

Bruno Bracalente, Cristiano Perugini and Fabrizio Pompei

No 51/2008, Quaderni del Dipartimento di Economia, Finanza e Statistica from Università di Perugia, Dipartimento Economia

Abstract: The objective of this paper is to analyse theoretically and empirically the effects of sectoral homogeneity and urban heterogeneity on regional manufacturing “pure” productivity differentials. Hypotheses of the existence and co-existence of the two types of external effects are formulated and tested for the regions of 13 Western EU countries by means of panel data spatial econometric techniques. The outcomes clearly support our conjectures and also reveal how a simply strong manufacturing sector, i.e., not accounting for internal specialisation, may be harmful to productivity. This result, and the existence of heterogeneous externalities, are confirmed for a sample of regions extended to Eastern European countries.

Keywords: homogeneous and urban heterogeneous external economies; manufacturing productivity; EU regions (search for similar items in EconPapers)
JEL-codes: J24 O14 O18 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2008-04-01
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Citations: View citations in EconPapers (6)

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