In this work we first model the role of demand- and suply-side factors (labour market adjustment, productive efficiency) in explaining economic growth.Empirically testing the model, we evaluate why different growth regimes may appear in the 20 Italian administrative regions. This exercise uses a two-stage econometric approach. Estimates for the elasticities of manufacturing output to exports are obtained from regional time-series: a significant long-run relationship indicates the existence of a demand-constrained regime. We then ascertain whether the regional dispersion of supply-side factors has an impact on the regional dispersion of growth regimes. The empirical evidence supports our expectations of strong regional differences. Southern regions are less likely to display demand-constrained regimes. In explanations of these differences, second-stage analysis reveals that a strong role is played by such efficiency-enhancing factors as technological innovation, bank diffusion and ‘social capital’. No role is found for labour market rigidities.
Export-led growth and supply constraints: an investigation based on italian regional data
D'ACUNTO, Salvatore;
2004
Abstract
In this work we first model the role of demand- and suply-side factors (labour market adjustment, productive efficiency) in explaining economic growth.Empirically testing the model, we evaluate why different growth regimes may appear in the 20 Italian administrative regions. This exercise uses a two-stage econometric approach. Estimates for the elasticities of manufacturing output to exports are obtained from regional time-series: a significant long-run relationship indicates the existence of a demand-constrained regime. We then ascertain whether the regional dispersion of supply-side factors has an impact on the regional dispersion of growth regimes. The empirical evidence supports our expectations of strong regional differences. Southern regions are less likely to display demand-constrained regimes. In explanations of these differences, second-stage analysis reveals that a strong role is played by such efficiency-enhancing factors as technological innovation, bank diffusion and ‘social capital’. No role is found for labour market rigidities.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
