This work presents a territorial analysis of total factor productivity in Italy (TFP) from 1998 to 2006 using data at firm level. The territorial aspect is looked at in depth by dividing the TFP into the two components within-firms and between-firm. These two effects are calculated for both the entire sample and for subgroups of firms in order to consider the sector to which firms belong and their innovative efforts, as well as their internationalisation. The paper finds three main results. The first confirms the role of TFP as a key factor in explaining the recent slowdown of the Italian economy. The second result shows that a modernising of the industrial system has taken place in Italy which has limited the effects deriving from the slowing down of productivity. Finally, we show how this restructuring process has had differing results in the country’s different areas, without, however, modifying the technological dualism of the Italian economy.

Analysing Regional Differences in TFP. Evidence from Italian micro-data

PUPO, Valeria;AIELLO F;RICOTTA, Fernanda
2010-01-01

Abstract

This work presents a territorial analysis of total factor productivity in Italy (TFP) from 1998 to 2006 using data at firm level. The territorial aspect is looked at in depth by dividing the TFP into the two components within-firms and between-firm. These two effects are calculated for both the entire sample and for subgroups of firms in order to consider the sector to which firms belong and their innovative efforts, as well as their internationalisation. The paper finds three main results. The first confirms the role of TFP as a key factor in explaining the recent slowdown of the Italian economy. The second result shows that a modernising of the industrial system has taken place in Italy which has limited the effects deriving from the slowing down of productivity. Finally, we show how this restructuring process has had differing results in the country’s different areas, without, however, modifying the technological dualism of the Italian economy.
2010
Manufacturing sector; Total factor productivity; Italian regional divide
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.11770/172479
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