Mapping Local Productivity Advantages in Italy: Industrial Districts, Cities or Both?
Journal of Economic Geography, 14(2), pp. 365-394, 2014
30 Pages Posted: 15 Jun 2014
Date Written: March 2014
Using data from a large sample of Italian manufacturing firms we provide novel empirical evidence on the magnitude of local productivity advantages in two types of spatially concentrated regions: urban areas (UAs) and industrial districts (IDs). A larger surplus is estimated for cities compared to industrial clusters, only partially related to the more skilled workforce employed in UAs. Over the last decade, the productivity premium of UAs has remained essentially unchanged, while that of IDs has showed a tendency to decline, suggesting that the former were better able to cope with the major shocks that hit the world economy.
Keywords: Urban areas, industrial districts, agglomeration economies
JEL Classification: C52, D24, R12
Suggested Citation: Suggested Citation