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Time Varying Agglomeration Effects on Total Factor Productivity in Spanish Regions (1995-2008)

Author

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  • Francisco Javier ESCRIBA
  • María José MURGUI

Abstract

The lack of capital stock data disaggregated to sector and regional level has led to the utilisation of employment and labour productivity trends as indicators to analyse the effect of agglomeration economies on TFP. This research estimates the direct impact of sector and regional factors on the TFP of regional industry in Spain during the period 1995-2008. Estimation techniques for a dynamic panel are applied finding evidence that specialisation economies and market size have a strong sectoral influence on TFP in both the short and long term. However, human capital and transport and urban infrastructures have a significant effect on TFP trends only in the short term. Our results confirm the doubts created by the use of employment behaviour to capture the influence of agglomeration economies on regional productivity.

Suggested Citation

  • Francisco Javier ESCRIBA & María José MURGUI, 2014. "Time Varying Agglomeration Effects on Total Factor Productivity in Spanish Regions (1995-2008)," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(2).
    • Handle: RePEc:eaa:eerese:v:14:y2014:i:2_6
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    References listed on IDEAS

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    More about this item

    Keywords

    Total factor productivity; externalities; dynamic panel.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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