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The intersectoral linkages and manufacturing productivity growth in Italian regions using the I-O approach

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  • Antonioli, Davide
  • Berardino, Claudio Di
  • Onesti, Gianni

Abstract

The intersectoral linkages in the production structures have been analysed under several angles in recent years, but these were mainly developed at the national level neglecting the regional aspects. In this paper, we aim to fill this gap by analysing the intersectoral linkages from a regional perspective by studying the case of Italian regions. We use the input-output approach to investigate the process of integration between manufacturing and market services, clarifying the role of market services in strengthening the productivity of the regional manufacturing systems. The results show that an increasing share of market services in regional manufacturing is evident across the Italian regions. The empirical estimations clearly show a strong connection between the growth of market services integrated in manufacturing and the growth of manufacturing productivity. The findings are robust when we control for the intersectoral linkages along the value chain, by adopting the vertically integrated sector (or subsystem).

Suggested Citation

  • Antonioli, Davide & Berardino, Claudio Di & Onesti, Gianni, 2023. "The intersectoral linkages and manufacturing productivity growth in Italian regions using the I-O approach," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 120-133.
    • Handle: RePEc:eee:streco:v:66:y:2023:i:c:p:120-133
    DOI: 10.1016/j.strueco.2023.04.007
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    More about this item

    Keywords

    Intersectoral linkages; Regional structural change; Input-output; Subsystem approach; Manufacturing productivity;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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