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Explaining TFP at firm level in Italy. Does location matter?

Francesco Aiello, Valeria Pupo () and Fernanda Ricotta

MPRA Paper from University Library of Munich, Germany

Abstract: This study considers how firms’ internal variables and regional factors affect the total factor productivity of Italian manufacturing firms. Due to of the hierarchical structure of data in estimation, we employ a multilevel model. Results, which refer to 2006, show the importance of firm-specific determinants of TFP, but at the same time confirm the role of regional context in explaining the gap in TFP levels which exist between the South and the North of Italy. In this respect, we show that northern firms are localised in regions with adequate endowment of infrastructure, with efficient public administration and with high R&D intensity and, as a result of these factors, perform better than firms operating in less well endowed regions.

Keywords: Manufacturing Firms; Total Factor Productivity, Italian Regional Divide; Multilevel Models (search for similar items in EconPapers)
JEL-codes: L60 O14 R11 (search for similar items in EconPapers)
Date: 2011-12-30
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-eur, nep-geo, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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https://mpra.ub.uni-muenchen.de/35656/1/MPRA_paper_35656.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/36854/1/MPRA_paper_36854.pdf revised version (application/pdf)

Related works:
Working Paper: EXPLAINING TFP AT FIRM LEVEL IN ITALY. DOES LOCATION MATTER? (2012) Downloads
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