Resource title

Spatial Externalities and Empirical Analysis: The Case of Italy

Resource image

image for OpenScout resource :: Spatial Externalities and Empirical Analysis: The Case of Italy

Resource description

In the last ten years the space issue, i.e. the study of the role played by space in economic phenomena, has attracted a lot of interest from many economic fields. The combination of increasing returns, market imperfections, and trade costs creates forces that, together with factor endowments, determine the distribution of economic activities. The aim of this work is to estimate a model of economic geography, using a space-time panel data on Italian provinces, in order to both test the empirical relevance of this theory, and try to give a measure of the geographic extent of spatial externalities. Particular attention has been devoted to address rigorously those endogeneity issues that naturally arises when dealing with both structural models and spatial data. Our results are consistent with the hypothesis that product-market linkages actually influence the geographic concentration of economic activities and that their spread over space is, contrary to previous findings, not negligible.

Resource author

Giordano Mion

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/23973

Resource license

Adapt according to the presented license agreement and reference the original author.