How 'Provincial' is Your Region? Effects on Labour Productivity in Europe

WP of Sant'Anna School of Advanced Studies, Pisa

43 Pages Posted: 1 Mar 2001

See all articles by Alfonso Gambardella

Alfonso Gambardella

Bocconi University - Department of Management and Technology

Myriam Mariani

University of Maastricht - Maastricht Economic Research Institute on Innovation and Technology (MERIT)

Salvatore Torrisi

Department of Economics, Management and Statistics; Bocconi University

Date Written: December 2001

Abstract

This paper estimates the determinants of labour productivity in European NUTS regions during 1989-1996. We compare three potential explanations of regional advantages: Technological capabilities (proxied by regional patents), agglomeration economies (employment density), and openness. To study the latter we use the number of airplane passengers embarked and disembarked in the region, and found that this is a meaningful index for the openness of the regions. By using instrumental variables, we confirm existing results that patents and employment density affect labour productivity. Our novel finding is that openness affects labour productivity as well.

Note: Previously titled "How Provincial is your Region? Effects on Labour Productivity and Employment in Europe"

Keywords: Openness, labour productivity, agglomeration economies, technology, European regions

JEL Classification: O18, O30, O47, R11

Suggested Citation

Gambardella, Alfonso and Mariani, Myriam and Torrisi, Salvatore, How 'Provincial' is Your Region? Effects on Labour Productivity in Europe (December 2001). WP of Sant'Anna School of Advanced Studies, Pisa, Available at SSRN: https://ssrn.com/abstract=261953 or http://dx.doi.org/10.2139/ssrn.261953

Alfonso Gambardella (Contact Author)

Bocconi University - Department of Management and Technology ( email )

Via Roentgen 1
Milan, MI 20136
Italy

Myriam Mariani

University of Maastricht - Maastricht Economic Research Institute on Innovation and Technology (MERIT) ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+39 0347 5180190 (Phone)

Salvatore Torrisi

Department of Economics, Management and Statistics ( email )

Piazza dell'Ateneo Nuovo, 1
Milano, Milan 20126
Italy

HOME PAGE: http://https://www.unimib.it/salvatore-torrisi

Bocconi University ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

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