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The role of knowledge‐based supply specialisation for competitiveness: A spatial econometric approach

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  • Daria Ciriaci
  • Daniela Palma

Abstract

. This paper aims to assess to what extent deterioration of Italy's trade competitiveness in manufacturing over the decade 1993–2004 has been determined by the evolution of localised comparative advantages in knowledge based industries. Stressing Kaldor's idea of dynamic increasing returns in manufacturing industries, we adopted a spatial econometric approach in order to account for the role of geographical proximity in facilitating the exchange of knowledge flows. We estimated a canonical regional export demand function for the 103 NUTS 3 explicitly introducing specialization in high‐tech goods. Export competitiveness is shown to be deeply rooted at the local level with the role of knowledge‐based competitiveness declining in the centre and north and world demand remaining the only engine of export growth in the south. Resumen. Este artículo se centra en evaluar hasta que punto el deterioro de la competitividad comercial italiana en productos manufacturados en la década 1993–2004 ha estado determinado por la evolución de ventajas comparativas locales en industrias basadas en conocimiento. Con un énfasis en la idea de Kaldor de rendimientos crecientes dinámicos en industrias manufactureras, adoptamos un enfoque econométrico espacial para tomar en cuenta el papel de la proximidad geográfica en facilitar el intercambio de flujos de conocimiento. Estimamos una función de demanda de exportación regional canónica para las 103 NUTS 3, introduciendo explícitamente una especialización en productos de alta tecnología. Se muestra que la competitividad en la exportación está profundamente enraizada a nivel local con el papel de la competitividad basada en conocimiento disminuyendo en el centro y el norte y siendo la demanda mundial el único motor que queda de crecimiento de la exportación en el sur.

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  • Daria Ciriaci & Daniela Palma, 2008. "The role of knowledge‐based supply specialisation for competitiveness: A spatial econometric approach," Papers in Regional Science, Wiley Blackwell, vol. 87(3), pages 453-475, August.
    • Handle: RePEc:bla:presci:v:87:y:2008:i:3:p:453-475
    DOI: 10.1111/j.1435-5957.2008.00198.x
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    1. Daria Ciriaci & Daniela Palma, 2012. "To what extent are knowledge-intensive business services contributing to manufacturing? A subsystem analysis," JRC Working Papers on Corporate R&D and Innovation 2012-02, Joint Research Centre.
    2. Cceilia Iona Lasino & Giovanna Vallanti, 2011. "Reforms, labour market functioning and productivity dynamics: a sectoral analysis for Italy," Working Papers LuissLab 1193, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    3. Laura Barbieri & Mariarosa Borroni & Andrea Lippi & Mariacristina Piva & Simone Rossi, 2021. "Determinants of Bank Branch Presence in Local Areas: A Comparison Between North and South of Italy," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(9), pages 1-15, August.
    4. Andrea Cammelli, 2012. "Consolidamento ed eterogeneità nelle esperienze di studio dei laureati italiani," Working Papers 49, AlmaLaurea Inter-University Consortium.
    5. Kristian Behrens & Frédéric Robert‐Nicoud, 2009. "Krugman's Papers in Regional Science: The 100 dollar bill on the sidewalk is gone and the 2008 Nobel Prize well‐deserved," Papers in Regional Science, Wiley Blackwell, vol. 88(2), pages 467-489, June.
    6. Valeria Cirillo & Marta Fana & Dario Guarascio, 2017. "Labour market reforms in Italy: evaluating the effects of the Jobs Act," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(2), pages 211-232, August.
    7. Ciriaci, Daria & Palma, Daniela, 2010. "Geography, environmental efficiency and Italian economic growth: a spatially-adapted Environmental Kuznets Curve," MPRA Paper 22899, University Library of Munich, Germany.
    8. Mr. Sergi Lanau & Petia Topalova, 2016. "The Impact of Product Market Reforms on Firm Productivity in Italy," IMF Working Papers 2016/119, International Monetary Fund.
    9. Alvarado, Rafael, 2011. "Measuring the competitiveness of the provinces of Ecuador," MPRA Paper 34244, University Library of Munich, Germany.
    10. Raffaela Giordano & Sergi Lanau & Pietro Tommasino & Petia Topalova, 2020. "Does public sector inefficiency constrain firm productivity? Evidence from Italian provinces," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(4), pages 1019-1049, August.
    11. Enrico Maria Mosconi & Andrea Colantoni & Filippo Gambella & Eva Cudlinová & Luca Salvati & Jesús Rodrigo-Comino, 2020. "Revisiting the Environmental Kuznets Curve: The Spatial Interaction between Economy and Territory," Economies, MDPI, vol. 8(3), pages 1-20, September.
    12. Giuseppe Arbia, 2011. "A Lustrum of SEA: Recent Research Trends Following the Creation of the Spatial Econometrics Association (2007--2011)," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 377-395, July.
    13. Viego, Valentina, 2010. "Rendimientos crecientes, costos de transporte, eslabonamientos verticales y asimetrías regionales persistentes [Increasing returns, transport costs, vertical linkages and persistent regional inequa," MPRA Paper 26881, University Library of Munich, Germany, revised 04 Aug 2010.
    14. Maria Grazia Zoia & Laura Barbieri & Flavia Cortelezzi & Giovanni Marseguerra, 2018. "The determinants of Italian firms’ technological competencies and capabilities," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(4), pages 453-476, December.

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