Productivity Growth in the Old and New Europe: The Role of Agglomeration Externalities

25 Pages Posted: 30 Mar 2017

See all articles by Emanuela Marrocu

Emanuela Marrocu

Universita di Cagliari - Centre for North South Economic Research (CRENOS)

Raffaele Paci

University of Cagliari - Centre for North South Economic Research (CRENOS)

Stefano Usai

Universita di Cagliari

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Date Written: August 2013

Abstract

As Europe is currently characterized by huge disparities in the economic performance of “old” and “new” states, we investigate whether this is the result of local agglomeration—specialization and diversity—externalities. Our spatial econometric analysis focuses on total factor productivity dynamics over the period 1996–2007 for 13 industries located in 276 European regions. Consistently with the “nursery cities” theory, we find that diversity exerts a positive effect in the knowledge‐intensive services of the “old” Europe urban areas, while specialization is still effective in the “new” Europe low‐tech manufacturing. Human and technological capital has also a positive impact.

Suggested Citation

Marrocu, Emanuela and Paci, Raffaele and Usai, Stefano, Productivity Growth in the Old and New Europe: The Role of Agglomeration Externalities (August 2013). Journal of Regional Science, Vol. 53, Issue 3, pp. 418-442, 2013. Available at SSRN: https://ssrn.com/abstract=2943079 or http://dx.doi.org/10.1111/jors.12000

Emanuela Marrocu (Contact Author)

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
ITALY
+39.0706753764 (Phone)
+30.0706753760 (Fax)

Raffaele Paci

University of Cagliari - Centre for North South Economic Research (CRENOS) ( email )

Viale S. Ignazio, 78
Cagliari I-09123
Italy
+70-6753764 (Phone)
+70-6753760 (Fax)

Stefano Usai

Universita di Cagliari ( email )

Cagliari, 09124
Italy

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