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Productivity growth in the Old and New Europe: the role of agglomeration externalities

Marrocu, Emanuela and Paci, Raffaele and Usai, Stefano (2010) Productivity growth in the Old and New Europe: the role of agglomeration externalities. Cagliari, CRENoS. p. 31 (Working Papers CRENoS, 2010, 24). Working Paper.

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Abstract

The recent history of the European Union is characterized by a dual picture showing the Old and the New countries in sharp contrast with respect to several economic dimensions. In particular, regions and industries in Eastern countries have shown an excellent performance whilst Western countries have kept moving on a rather slow track. Our aim is to assess the intertwined performance of regions and industries in New and Old economies within Europe by investigating the dynamics of total factor productivity over the period 1996-2007 and the role played by local externalities in the agglomeration process of economic activities. Among the determinants of local industry growth we analyse the agglomeration externalities and, in particular, we focus on the different impact of the specialisation and diversity externalities. Moreover, we analyse the potential influence of regional intangible assets such as human and technological capital while controlling for other territorial features which may affect the efficiency of the local industry. The empirical analysis makes use of spatial econometric techniques to take into account the possibility of cross-border externalities.

Item Type:Working Paper
ID Code:5617
Status:Published
Uncontrolled Keywords:Agglomeration externalities, local industry growth, Total Factor Productivity, spatial models, European regional cohesion
Subjects:Area 13 - Scienze economiche e statistiche > SECS-P/01 Economia politica
Divisions:002 Altri enti e centri di ricerca del Nord Sardegna > CRENoS-Centro Ricerche Economiche Nord Sud, Università di Cagliari e Università di Sassari
001 Università di Sassari > 01 Dipartimenti > Economia, istituzioni e società
Publisher:CRENoS
Publisher Policy:Depositato per gentile concessione del CRENoS
Deposited On:22 Feb 2011 10:20

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