The Producer Service Sector in Italy: Long-term Growth and its Local Determinants

摘要: Abstract This paper analyses the local determinants of producer service growth in Italy, focusing on agglomeration economies. From a methodological viewpoint, we address critique Glaeser et al. (1992)-type employment regressions by deriving reduced-form equation that incorporates variables affecting both labour supply and demand for industry's output. At same time, implementing an error-correction approach, improve previous dynamic specifications do not allow short-term fluctuations along steady-state path. It turns out long-run is positively influenced specialization, with smaller role played urbanization externalities. These results are line empirical findings recent analysis based firm-level TFP (total factor productivity) estimates, thus providing them valuable cross-validation, considering measurement far from being undisputed, especially sector. Le s...