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Production sophisticatedness and growth: evidence from Italian provinces before and during the crisis, 1997–2013

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  • Nicola Daniele Coniglio
  • Raffaele Lagravinese
  • Davide Vurchio

Abstract

In this article—following the methodology developed by Hausmann et al. (Hausmann, R., Hwang, R., Rodrik, D. (2007) What you export matters. Journal of Economic Growth, 12: 1–25)—we investigate the evolution of production sophisticatedness of Italian provinces in the period 1997–2013 and the importance of the degree of ‘complexity’ of the provincial production bundle for subsequent economic growth. The analysis at a sub-national level, NUTS3, allows us to identify the spatial structure of economic complexity and the patterns of converge/divergence in this important ingredient of economic performance. We find evidence of a convergence in provincial production complexity during the pre-crisis period. Besides, we highlight using panel estimates a significant role of product sophisticatedness as an engine of growth. The current crisis has halted this convergence process and has asymmetrically affected provincial areas, substantially increasing the heterogeneity of provincial trajectories, in particular in the least developed parts of the country.

Suggested Citation

  • Nicola Daniele Coniglio & Raffaele Lagravinese & Davide Vurchio, 2016. "Production sophisticatedness and growth: evidence from Italian provinces before and during the crisis, 1997–2013," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(2), pages 423-442.
    • Handle: RePEc:oup:cjrecs:v:9:y:2016:i:2:p:423-442.
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    File URL: http://hdl.handle.net/10.1093/cjres/rsw006
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    References listed on IDEAS

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    1. Sandra Poncet & Felipe Starosta de Waldemar, 2015. "Product Relatedness and Firm Exports in China," The World Bank Economic Review, World Bank, vol. 29(3), pages 579-605.
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    Cited by:

    1. Nicola D Coniglio & Raffaele Lagravinese & Davide Vurchio & Massimo Armenise, 2018. "The pattern of structural change: testing the product space framework," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(4), pages 763-785.
    2. Felipe Orsolin Teixeira & Fabricio Jose Missio & Ricardo Dathein, 2022. "Economic complexity, structural transformation and economic growth in a regional context: Evidence for Brazil," PSL Quarterly Review, Economia civile, vol. 75(300), pages 63-79.
    3. Song Zhang & Chunlai Chen, 2020. "Does Outward Foreign Direct Investment Facilitate China's Export Upgrading?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 28(5), pages 64-89, September.
    4. Haini, Hazwan & Wei Loon, Pang & Li Li, Pang, 2023. "Can export diversification promote export upgrading? Evidence from an oil-dependent economy," Resources Policy, Elsevier, vol. 80(C).
    5. Andrea Filippetti & Petros Gkotsis & Antonio Vezzani & Antonio Zinilli, 2020. "Are innovative regions more resilient? Evidence from Europe in 2008–2016," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 807-832, October.

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