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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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Identification Number: 10.1016/j.econlet.2018.04.020

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
Sets: Departments > Geography and Environment
Date Deposited: 14 May 2018 10:59
Last Modified: 20 Oct 2019 00:14
URI: http://eprints.lse.ac.uk/id/eprint/87912

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