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Explaining labour productivity differentials across Italian regions: the role of socio‐economic structure and factor endowments

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  • Valter Di Giacinto
  • Giorgio Nuzzo

Abstract

. This article aims at explaining substantial and persistent regional labour productivity differentials in Italy. First, the role played by the diversity of local economic structures is quantitatively assessed. Within‐industry productivity levels are then related to regional endowments of physical and human capital per worker and to total factor productivity. Subsequently, an empirical evaluation of the influence exercised by a selected set of explanatory factors on regional total factor productivity (TFP) levels is performed. In this context, spatial econometrics techniques are employed to obtain inferences that are robust to the presence of spatial autocorrelation in the data.

Suggested Citation

  • Valter Di Giacinto & Giorgio Nuzzo, 2006. "Explaining labour productivity differentials across Italian regions: the role of socio‐economic structure and factor endowments," Papers in Regional Science, Wiley Blackwell, vol. 85(2), pages 299-320, June.
    • Handle: RePEc:bla:presci:v:85:y:2006:i:2:p:299-320
    DOI: 10.1111/j.1435-5957.2006.00072.x
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    3. Alessandro Arrighetti & Andrea Lasagni & Gilberto Seravalli, 2003. "Capitale sociale, associazionismo economico e istituzioni: indicatori statistici di sintesi," Rivista di Politica Economica, SIPI Spa, vol. 93(4), pages 47-88, July-Augu.
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    5. Raffaele Paci & Francesco Pigliaru, 1999. "Growth and sectoral dynamics in the Italian regions," Chapters, in: John Adams & Francesco Pigliaru (ed.), Economic Growth and Change, chapter 12, Edward Elgar Publishing.
    6. Maria Laura Parisi & Fabio Schiantarelli & Alessandro Sembenelli, 2002. "Productivity, Innovation Creation and Absorption, and R&D: Micro Evidence for Italy," Boston College Working Papers in Economics 526, Boston College Department of Economics.
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