Local Productive Structures, Spatial Dependence and Employment Dynamics
Local Economies and Internationalization in Italy Conference, p. 53, 2003
35 Pages Posted: 31 Jul 2012
Date Written: November 20, 2003
This paper is concerned with employment growth at sectoral and local level in Italy. With respect to previous literature, we introduce across regions spatial spillovers and an explicit econometric dynamic set-up to analyse the behaviour of the model through time. We find that a province’s employment growth rate is closely related to that of nearby provinces. Spatial spillovers, however, are weaker in relatively large geographical units. A diversified mix of productive activities has a positive effect on employment growth rates at local level, while employment density and specialisation have a negative impact. We also find that these negative effects extend across different cyclical phases of the Italian economy, hence they are not restricted to a time period of decreasing employment levels.
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