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Do high-quality local institutions shape labour productivity in Western European manufacturing firms?

Ganau, Roberto and Rodríguez-Pose, Andrés ORCID: 0000-0002-8041-0856 (2019) Do high-quality local institutions shape labour productivity in Western European manufacturing firms? Papers in Regional Science, 98 (4). pp. 1633-1666. ISSN 1056-8190

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Identification Number: 10.1111/pirs.12435


We investigate the extent to which regional institutional quality shapes firm labour productivity in Western Europe, using a sample of manufacturing firms from Austria, Belgium, France, Germany, Italy, Portugal and Spain, observed over the period 2009–2014. The results indicate that regional institutional quality positively affects firms' labour productivity and that government effectiveness is the most important institutional determinant of productivity levels. However, how institutions shape labour productivity depends on the type of firm considered. Smaller, less capital endowed and high-tech sectors are three of the types of firms whose productivity is most favourably affected by good and effective institutions at the regional level.

Item Type: Article
Additional Information: © 2019 The Author(s). Papers in Regional Science © 2019 RSAI
Divisions: Geography & Environment
Subjects: H Social Sciences > HC Economic History and Conditions
Q Science > QA Mathematics
JEL classification: C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C23 - Models with Panel Data
D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity
H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods
R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade
Date Deposited: 03 Apr 2019 13:48
Last Modified: 16 May 2024 02:42

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