How Provincial is your Region? Effects on Labour Productivity and Employment in Europe

Alfonso Gambardella, Myriam Mariani and Salvatore Torrisi ()

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

Abstract: This paper estimates the determinants of labour productivity in European NUTS regions during 1989-1996. We compare three potential explanations of regional advantages: Technological capabilities (proxied by regional patents), agglomeration economies (employment density), and openness. To study the latter we use the number of airplane passengers embarked and disembarked in the region, and found that this is a meaningful index for the openness of the regions. By using instrumental variables, we confirm existing results that patents and employment density affect labour productivity. Our novel finding is that openness affects labour productivity as well.

Keywords: Openness; labour productivity; agglomeration economies; technology; European regions. (search for similar items in EconPapers)
Date: 2003-12-08
New Economics Papers: this item is included in nep-eec, nep-geo and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: How Provincial is your Region? Effects on Labour Productivity and Employment in Europe (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:ssa:lemwps:2003/06

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