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Related variety, trade linkages, and regional growth in Italy

Boschma, Ron and Iammarino, Simona (2009) Related variety, trade linkages, and regional growth in Italy. Economic Geography, 85 (3). pp. 289-311. ISSN 0013-0095

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Abstract

This article presents estimates of the impact of regional variety and trade linkages on regional economic growth by means of export and import data by Italian province (NUTS 3) and sector (three-digit) for the period 1995–2003. Our results show strong evidence that related variety contributes to regional economic growth. Thus, Italian regions that are well endowed with sectors that are complementary in terms of competences (i.e., that show related variety) perform better. The article also assesses the effects of the breadth and relatedness of international trade linkages on regional growth, since they may bring new and related variety to a region. Our analysis demonstrates that regional growth is not affected by simply being well connected to the outside world or having a high variety of knowledge flowing into the region. Rather, we found evidence of related extraregional knowledge sparking intersectoral learning across regions. When the cognitive proximity between the extraregional knowledge and the knowledge base of a region is neither too small nor too large, real learning opportunities are present, and the external knowledge contributes to growth in regional employment.

Item Type: Article
Official URL: http://www.clarku.edu/ECONGEOGRAPHY/
Additional Information: © 2009 Clark University
Library of Congress subject classification: G Geography. Anthropology. Recreation > G Geography (General)
H Social Sciences > HD Industries. Land use. Labor > HD100 Land Use
D History General and Old World > DG Italy
H Social Sciences > HB Economic Theory
Sets: Research centres and groups > Information Systems and Innovation Group
Departments > Management
Collections > Economists Online
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 25 Mar 2010 16:10
URL: http://eprints.lse.ac.uk/27520/

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