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Explaining labour productivity differentials across Italian regions: the role of socio‐economic structure and factor endowments*
Author(s) -
Giacinto Valter Di,
Nuzzo Giorgio
Publication year - 2006
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5957.2006.00072.x
Subject(s) - productivity , total factor productivity , economics , human capital , context (archaeology) , economic geography , labour economics , diversity (politics) , econometrics , demographic economics , geography , economic growth , sociology , archaeology , anthropology
. 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.