Spatial agglomeration, global value chains, and productivity: micro-evidence from Italy and Spain

Cainelli, Giulio, Ganau, Roberto and Giunta, Anna (2018) Spatial agglomeration, global value chains, and productivity: micro-evidence from Italy and Spain. Economics Letters, 169. pp. 43-46. ISSN 0165-1765

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Abstract

We investigate the relationship between spatial agglomeration and firms’ labor productivity in Italy and Spain, examining firm-level heterogeneity in Global Value Chain positioning. We analyze a sample of 4, 025 manufacturing firms during the period from 2010 to 2014 and employ a shift-share instrumental variable approach. We find that agglomeration has a positive effect on labor productivity for suppliers but not for final firms.

Item Type:	Article
Official URL:	https://www.sciencedirect.com/journal/economics-le...
Additional Information:	© 2018 Elsevier B.V.
Divisions:	Geography & Environment
Subjects:	H Social Sciences > HB Economic Theory
JEL classification:	D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L23 - Organization of Production R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade
Date Deposited:	14 May 2018 10:59
Last Modified:	11 Dec 2024 21:38
URI:	http://eprints.lse.ac.uk/id/eprint/87912

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