Journal
REGIONAL STUDIES
Volume 52, Issue 7, Pages 922-933Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/00343404.2017.1360482
Keywords
distance-based agglomeration; neighbourhood characteristics; total factor productivity; manufacturing; Italy
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This paper tests the hypothesis that firms with different characteristics can differ in their capability to produce local externalities by investigating the relationship between firm-specific distance-based weighted agglomeration measures and firms' short-run productivity growth in the Italian manufacturing industry. The results suggest that positive localization economies increase with distance when neighbouring firms' characteristics are accounted for. Diversification-type forces have negative effects on productivity growth at short distances, while there are positive effects at longer distances regardless of the weighting scheme considered. Moreover, the negative effect of inter-industry externalities seems to persist over distance when neighbouring firms' characteristics are accounted for.
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