We analyse business performance by using a unique dataset of the universe of Italian local business units. We investigate the pattern of both productivity and profitability by adopting a decomposition technique to document spatial variation across urban and non-urban areas. Aggregate evidence indicates that an urban – non-urban productivity divide exists, but this premium vanishes with respect to profitability. Plant-level estimations using a Hierarchical Linear Model show that area attractiveness positively affects productivity, whereas diseconomies of agglomeration negatively affect profitability. Coping with agglomeration costs is a priority for the regional policy if the productivity gains in urban areas could be transferred into new investment and growth opportunities.

Bartoloni, E., Baussola, M., Productivity and earnings at Firms’ Local Unit Level: the case of Lombardy urban and non-urban agglomerations, <<Dipartimento di Scienze Economiche e Sociali>>, 2019; n 144 2019 (144): 3-51 [http://hdl.handle.net/10807/144453]

Productivity and earnings at Firms’ Local Unit Level: the case of Lombardy urban and non-urban agglomerations

Baussola, Maurizio
Secondo
2019

Abstract

We analyse business performance by using a unique dataset of the universe of Italian local business units. We investigate the pattern of both productivity and profitability by adopting a decomposition technique to document spatial variation across urban and non-urban areas. Aggregate evidence indicates that an urban – non-urban productivity divide exists, but this premium vanishes with respect to profitability. Plant-level estimations using a Hierarchical Linear Model show that area attractiveness positively affects productivity, whereas diseconomies of agglomeration negatively affect profitability. Coping with agglomeration costs is a priority for the regional policy if the productivity gains in urban areas could be transferred into new investment and growth opportunities.
Inglese
Dipartimento di Scienze Economiche e Sociali
9788834341476
Vita e Pensiero
Bartoloni, E., Baussola, M., Productivity and earnings at Firms’ Local Unit Level: the case of Lombardy urban and non-urban agglomerations, <<Dipartimento di Scienze Economiche e Sociali>>, 2019; n 144 2019 (144): 3-51 [http://hdl.handle.net/10807/144453]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/144453
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