Agglomeration economies and growth-The case of Italian local labour systems, 1991-2001

TitleAgglomeration economies and growth-The case of Italian local labour systems, 1991-2001
Publication TypeWorking Paper
Year of Publication2006
AuthorsR. Paci, S. Usai
Number2006_12
Keywordsagglomeration externalities, local growth, spatial dependence
Abstract

The main objective of this paper is to assess the role of a large set of factors which potentially relate agglomeration economies to local growth. Such a relationship is analysed thanks to an ample database on the case of Italy which refers to 784 Local Labour Systems and 34 sectors (21 manufacturing and 13 services) over the period 1991-2001. Econometric results show that local growth in Italy is characterized by significant differences across sectors. It is worth mentioning the positive influence of diversity externalities, human and social capital and the negative influence of specialisation externalities and competition. Spatial association is also detected.

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