Startseite Economic complexity and productivity polarization: Evidence from Italian provinces
Artikel
Lizenziert
Nicht lizenziert Erfordert eine Authentifizierung

Economic complexity and productivity polarization: Evidence from Italian provinces

  • Roberto Basile ORCID logo EMAIL logo und Gloria Cicerone
Veröffentlicht/Copyright: 18. März 2022

Abstract

In this paper, we analyze the role of economic complexity as a driver of regional labor productivity growth in Italy. The Economic Complexity Index (ECI) measures the multiplicity of knowledge embedded in an economy’s productive structure and can be interpreted as an indicator of “qualified diversity”. We assess the impact of ECI on the distribution dynamics of labor productivity by combining growth regression analysis with conditional density estimates. Counterfactual analysis results suggest that ECI plays a key role in the observed tendency to polarization of regional labor productivity. We also provide evidence of a long-run relationship between labor productivity and ECI by using a panel cointegration analysis.

JEL Classification: R11; R12

References

Adam, A., A. Garas, M.-S. Katsaiti, and A. Lapatinas. 2021. “Economic Complexity and Jobs: an Empirical Analysis.” Economics of Innovation and New Technology 1–28. 10.1080/10438599.2020.1859751Suche in Google Scholar

Aghion, P., and P. Howitt. 1998. Endogenous Growth Theory. MIT Press. Suche in Google Scholar

Anderson, G., O. Linton, and T. W. Leo. 2012. “A Polarization-cohesion Perspective on Cross-country Convergence.” Journal of Economic Growth 17(1): 49–69. 10.1007/s10887-011-9072-3Suche in Google Scholar

Araujo, R. A. 2013. “Cumulative Causation in a Structural Economic Dynamic Approach to Economic Growth and Uneven Development.” Structural Change and Economic Dynamics 24: 130–140. 10.1016/j.strueco.2012.09.001Suche in Google Scholar

Araujo, R. A., and G. T. Lima. 2007. “A Structural Economic Dynamics Approach to Balance-of-payments-constrained Growth.” Cambridge Journal of Economics 31(5): 755–774. 10.1093/cje/bem006Suche in Google Scholar

Bai, J. 2009. “Panel Data Models with Interactive Fixed Effects.” Econometrica 77(4): 1229–1279. 10.3982/ECTA6135Suche in Google Scholar

Balland, P., and D. Rigby. 2017. “The Geography of Complex Knowledge.” Economic Geography 93(1): 1–23. 10.1080/00130095.2016.1205947Suche in Google Scholar

Balland, P. A., R. Boschma, J. Crespo, and D. L. Rigby. 2019. “Smart Specialization Policy in the European Union: Relatedness, Knowledge Complexity and Regional Diversification.” Regional Studies 53(9): 1252–1268. 10.1080/00343404.2018.1437900Suche in Google Scholar

Barca, F. 2009. “An Agenda for a Reformed Cohesion Policy: A Placebased Approach to Meeting European Union Challenges and Expectations. (Independent report prepared at the request of the European Commissioner for Regional Policy, Danuta Hübner),” Brussels. Suche in Google Scholar

Basile, R. 2009. “Productivity Polarization Across Regions in Europe: The Role of Nonlinearities and Spatial Dependence.” International Regional Science Review 32(1): 92–115. 10.1177/0160017608326944Suche in Google Scholar

Basile, R., and G. Cicerone. 2022. Forthcoming: “Diversity and Spatial Productivity Growth”. Edited by M. Andersson, C. Karlsson, and S. Wixe. London: Oxford University Press. Suche in Google Scholar

Beaudry, C., and A. Schiffauerova. 2009. “Who’s Right, Marshall or Jacobs? The Localization Versus Urbanization Debate.” Research Policy 38(2): 318–337. 10.1016/j.respol.2008.11.010Suche in Google Scholar

Becattini, G., M. Bellandi, G. Del Ottati, F. Sforzi, et al. 2003. “From Industrial Districts to Local Development.” Edward Elgar Publishing number 2884. 10.4337/9781035304851Suche in Google Scholar

Ben Saâd, M., and G. Assoumou-Ella. 2019. “Economic Complexity and Gender Inequality in Education: An Empirical Study.” Economics Bulletin 39: 321–334. Suche in Google Scholar

Bondarev, A., and A. Greiner. 2019. “Endogenous Growth and Structural Change Through Vertical and Horizontal Innovations.” Macroeconomic Dynamics 23(1): 52–79. 10.1017/S1365100516001115Suche in Google Scholar

Boschma, R., and S. Iammarino. 2009. “Related Variety, Trade Linkages, and Regional Growth in Italy.” Economic Geography 85(3): 289–311. 10.1111/j.1944-8287.2009.01034.xSuche in Google Scholar

Bresnahan, T. F., and M. Trajtenberg. 1995. “General Purpose Technologies ‘Engines of Growth’?” Journal of Econometrics 65(1): 83–108. 10.3386/w4148Suche in Google Scholar

Bugamelli, M., A. Linarello, and F. Lotti. 2020. “Productivity Dynamics over the Last Decade. Evidence from the Universe of Italian Firms,” in La Produttività delle Imprese Italiane: Andamento, Determinanti e Proposte per un Rilancio. Edited by M. Bugamelli, M. Messori, and R. Monducci 49–72. Rome: Luiss. Suche in Google Scholar

Busse, M., and J. Königer. 2015. “Trade and Economic Growth: A Re-examination of the Empirical Evidence.” Economics Bulletin 35(4): 2862–2876. 10.2139/ssrn.2009939Suche in Google Scholar

Can, M., and G. Gozgor. 2017. “The Impact of Economic Complexity on Carbon Emissions: Evidence from France.” Environmental Science and Pollution Research 24(19): 16364–16370. 10.1007/s11356-017-9219-7Suche in Google Scholar

Carlsson, B., and R. Stankiewicz. 1991. “On the Nature, Function and Composition of Technological Systems.” Journal of Evolutionary Economics 1(2): 93–118. 10.1007/978-94-011-0145-5_2Suche in Google Scholar

Cheshire, P., and S. Magrini. 2005. Analysing Growth and Distribution Dynamics-Isolating Divergence Factors. Mimeo. Suche in Google Scholar

Chávez, J. C., M. T. Mosqueda, and M. Gómez-Zaldívar. 2017. “Economic Complexity and Regional Growth Performance: Evidence from the Mexican Economy.” Review of Regional Studies 47(2). 10.52324/001c.8023Suche in Google Scholar

Coniglio, N. D., R. Lagravinese, and D. Vurchio. 2016. “Production Sophisticatedness and Growth: Evidence from Italian Provinces Before and During the Crisis, 1997–2013.” Cambridge Journal of Regions, Economy and Society 9(2): 423–442. 10.1093/cjres/rsw006Suche in Google Scholar

Daboın, C., M. Escobari, G. Hernández, and J. Morales-Arilla. 2019. Economic Complexity and Technological Relatedness: Findings for American Cities. Mimeo. Suche in Google Scholar

Daumal, M., and Z. Selin. 2010. “The Impact of International Trade Flows on Economic Growth in Brazilian States.” Review of Economics and Institutions 2(1). 10.5202/rei.v2i1.27Suche in Google Scholar

Dong, Z., Y. Li, P.-A. Balland, S. Zheng, et al. 2019. “Industrial Land Policy and Economic Complexity of Chinese Cities,” Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography. Suche in Google Scholar

Dosi, G., C. Freeman, R. Nelson, G. Silverberg, and L. Soete. 1988. Technical Change and Economic Theory. Laboratory of Economics and Management (LEM), Sant’Anna School of Advanced Studies, Pisa, Italy. Suche in Google Scholar

Dosi, G., A. Roventini, and E. Russo. 2019. “Endogenous Growth and Global Divergence in a Multi-country Agent-based Model.” Journal of Economic Dynamics and Control 101: 101–129. 10.1016/j.jedc.2019.02.005Suche in Google Scholar

Durlauf, S. N., P. A. Johnson, and J. R. Temple. 2005. “Growth Econometrics.” Handbook of Economic Growth 1: 555–677. 10.1016/S1574-0684(05)01008-7Suche in Google Scholar

Ertur, C., and W. Koch. 2007. “Growth, Technological Interdependence and Spatial Externalities: Theory and Evidence.” Journal of Applied Econometrics 22(6): 1033–1062. 10.1002/jae.963Suche in Google Scholar

Ertur, C., and W. Koch. 2011. “A Contribution to the Theory and Empirics of Schumpeterian Growth with Worldwide Interactions.” Journal of Economic Growth 16(3): 215. 10.1007/s10887-011-9067-0Suche in Google Scholar

Fagerberg, J. 1988. “International Competitiveness.” Economic Journal 98: 355–374. 10.2307/2233372Suche in Google Scholar

Ferrarini, B., and P. Scaramozzino. 2016. “Production Complexity, Adaptability and Economic Growth.” Structural Change and Economic Dynamics 37: 52–61. 10.1016/j.strueco.2015.12.001Suche in Google Scholar

Ferraz, D., H. F. Moralles, J. S. Campoli, F. C. R. D. Oliveira, and D. A. D. N. Rebelatto. 2018. “Economic Complexity and Human Development: DEA Performance Measurement in Asia and Latin America.” Gestao & Produçao 25(1): 839–853. 10.1590/0104-530x3925-18Suche in Google Scholar

Fiaschi, D., L. Gianmoena, and A. Parenti. 2011. “The Dynamics of Labour Productivity Across Italian Provinces: Convergence and Polarization.” Rivista Italiana degli Economisti 16(2): 209–240. Suche in Google Scholar

Fiaschi, D., L. Gianmoena, and A. Parenti. 2018. Deep and Proximate Determinants of the World Income Distribution. Unpublished paper. Suche in Google Scholar

Foray, D., P. A. David, and B. H. Hall. 2009. “Smart Specialization. The Concept.” In Knowledge Economists Policy Brief, edited by E. Commission. Vol. 9. Brussels. Suche in Google Scholar

Foray, D., P. A. David, and B. H. Hall. 2011. Smart Specialization. From Academic Idea to Political Instrument, the Surprising Career of a Concept and the Difficulties Involved in Its Implementation. MTEI Working Paper, November. Lausanne: MTEI. Suche in Google Scholar

Frankel, J. A., and D. H. Romer. 1999. “Does Trade Cause Growth?” American Economic Review 89(3): 379–399. 10.4324/9781315254166-11Suche in Google Scholar

Frenken, K., F. Van Oort, and T. Verburg. 2007. “Related Variety, Unrelated Variety and Regional Economic Growth.” Regional Studies 41(5): 685–697. 10.1080/00343400601120296Suche in Google Scholar

Fritz, B. S., and R. A. Manduca. 2021. “The Economic Complexity of US Metropolitan Areas.” Regional Studies 55(7). 10.1080/00343404.2021.1884215Suche in Google Scholar

Glaeser, E. L., H. D. Kallal, J. A. Scheinkman, and A. Shleifer. 1992. “Growth in Cities.” Journal of Political Economy 100(6): 1126–1152. 10.3386/w3787Suche in Google Scholar

Hausmann, R., J. Hwang, and D. Rodrik. 2007. “What You Export Matters.” Journal of Economic Growth 12(1): 1–25. 10.3386/w11905Suche in Google Scholar

Hausmann, R., and B. Klinger. 2006. Structural Transformation and Patterns of Comparative Advantage in the Product Space. CID Working Paper: 128. 10.2139/ssrn.939646Suche in Google Scholar

Hidalgo, C. A. 2021. “Economic Complexity Theory and Applications.” Nature Reviews Physics 3(2): 92–113. 10.1038/s42254-020-00275-1Suche in Google Scholar

Hidalgo, C. A., and R. Hausmann. 2009. “The Building Blocks of Economic Complexity.” Proceedings of the National Academy of Sciences 106(26): 10570–10575. 10.1073/pnas.0900943106Suche in Google Scholar

Hidalgo, C. A., B. Klinger, A.-L. Barabási, and R. Hausmann. 2007. “The Product Space Conditions the Development of Nations.” Science 317(5837): 482–487. 10.1126/science.1144581Suche in Google Scholar

Howitt, P. 2000. “Endogenous Growth and Cross-country Income Differences.” American Economic Review 90(4): 829–846. 10.1257/aer.90.4.829Suche in Google Scholar

Jacobs, J. 1969. “The Economy of Cities (New York). 4,” K. Hopkins,—Economic Growth in Towns in Classical Antiquity. Suche in Google Scholar

Johnson, P. A. 2005. “A Continuous State Space Approach to “Convergence by Parts”.” Economics Letters 86(3): 317–321. 10.1016/j.econlet.2004.06.023Suche in Google Scholar

Kao, C. 1999. “Spurious Regression and Residual-based Tests for Cointegration in Panel Data.” Journal of Econometrics 90(1): 1–44. 10.1016/S0304-4076(98)00023-2Suche in Google Scholar

Lapatinas, A. 2016. “Economic Complexity and Human Development: a Note.” Economics Bulletin 36: 1441–1452. Suche in Google Scholar

Lapatinas, A., A. Garas, E. Boleti, and A. Kyriakou. 2019. “Economic Complexity and Environmental Performance: Evidence from a World Sample.” MDPI Open Access J. 12: 1–18. Suche in Google Scholar

Mankiw, N. G., D. Romer, and D. N. Weil. 1992. “A Contribution to the Empirics of Economic Growth.” The Quarterly Journal of Economics 107(2): 407–437. 10.3386/w3541Suche in Google Scholar

McCann, P., and R. Ortega-Argilés. 2015. “Smart Specialization, Regional Growth and Applications to European Union Cohesion Policy.” Regional Studies 49(8): 1291–1302. 10.1080/00343404.2013.799769Suche in Google Scholar

Minondo, A. 2011. “Does Comparative Advantage Explain Countries’ Diversification Level?” Review of World Economics 147(3): 1–20. 10.1007/s10290-011-0097-7Suche in Google Scholar

Neagu, O., and M. C. Teodoru. 2019. “The Relationship Between Economic Complexity, Energy Consumption Structure and Greenhouse Gas Emission: Heterogeneous Panel Evidence from the EU Countries.” Sustainability 11(497). 10.3390/su11020497Suche in Google Scholar

Pedroni, P. 1999. “Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors.” Oxford Bulletin of Economics and Statistics 61(S1): 653–670. 10.1111/1468-0084.61.s1.14Suche in Google Scholar

Pedroni, P. 2004. “Panel Cointegration: Asymptotic and Finite Sample Properties of Pooled Time Series Tests with an Application to the PPP Hypothesis.” Econometric Theory 20(3): 597–625. 10.1017/S0266466604203073Suche in Google Scholar

Pérez-Balsalobre, S., C. Llano Verduras, and J. Díaz-Lanchas. 2019. Measuring subnational economic complexity: An application with Spanish data. Discussion paper, JRC Working Papers on Territorial Modelling and Analysis. Suche in Google Scholar

Pesaran, M. H. 2004. General Diagnostic Tests for Cross Section Dependence in Panels. Discussion paper, CESifo Working Paper Series. 10.2139/ssrn.572504Suche in Google Scholar

Pesaran, M. H. 2007. “A Simple Panel Unit Root Test in the Presence of Cross-section Dependence.” Journal of Applied Econometrics 22(2): 265–312. 10.1002/jae.951Suche in Google Scholar

Petralia, S., P. A. Balland, and A. Morrison. 2017. “Climbing the Ladder of Technological Development.” Research Policy 46(5). 10.1016/j.respol.2017.03.012Suche in Google Scholar

Quah, D. T. 1997. “Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs.” Journal of Economic Growth 2(1): 27–59. 10.1023/A:1009781613339Suche in Google Scholar

Rodrik, D. 2008. “The Real Exchange Rate and Economic Growth.” Brookings Papers on Economic Activity 2: 365–412. 10.1353/eca.0.0020Suche in Google Scholar

Romer, P. M. 1990. “Endogenous Technological Change.” Journal of Political Economy 98(5, Part 2): S71–S102. 10.3386/w3210Suche in Google Scholar

Romero, J. P., and C. Gramkow. 2021. “Economic Complexity and Greenhouse Gas Emissions.” World Development 139: 105317. 10.1016/j.worlddev.2020.105317Suche in Google Scholar

Saviotti, P. P., and A. Pyka. 2004. “Economic Development by the Creation of New Sectors.” Journal of Evolutionary Economics 14(1): 1–35. 10.1007/s00191-003-0179-3Suche in Google Scholar

Stojkoski, V., Z. Utkovski, and L. Kocarev. 2016. “The Impact of Services on Economic Complexity: Service Sophistication as Route for Economic Growth.” PloS ONE 11(8): e0161633. 10.1371/journal.pone.0161633Suche in Google Scholar

Wohl, I. 2020. “The Method of Reflections and US Occupational Employment.” U. S. International Trade Commission. Suche in Google Scholar


Supplemental Material

The online version of this article offers supplementary material (https://doi.org/10.1515/ger-2021-0070).


Published Online: 2022-03-18
Published in Print: 2022-12-31

© 2022 Walter de Gruyter GmbH, Berlin/Boston

Heruntergeladen am 26.9.2025 von https://www.degruyterbrill.com/document/doi/10.1515/ger-2021-0070/html
Button zum nach oben scrollen