Public Infrastructure Investment and Efficiency in Italian Regions

Evidence on growth rates in per capita income of Italian regions reveals persistent differences in development patterns between North and South Italy. While Northern regions manage to sustain high growth rates, Southern regions stagnate in low growth traps. To explain the phenomenon of different long-term growth paths, we use the stochastic frontier approach which allows to discriminate between the channels through which public infrastructure influences overall productivity. The main results are that the impact of core-infrastructure investment on efficiency is always positive. The impact of non-core infrastructure on efficiency is negative in the South and positive in the North. The present study was carried out while Camilla Mastromarco was Marie Curie Research Fellow at the Department of Economics, University of Munich. We are grateful to participants at the 2nd Hellenic Workshop on Efficiency and Productivity Measurement in Patras, 2003, at the Workshop on Efficiency and Productivity Analysis in Oviedo, 2003, at the First Italian Congress on Econometrics and Empirical Economics in Venice, 2005, and to seminar participants at the Universities of Lecce and Verona for helpful comments and suggestions.     

State productivity growth in agriculture: catching-up and the business cycle

This paper examines the relation between the business cycle and convergence in levels of agricultural productivity across the 48 contiguous states. First, we find evidence of convergence in total factor productivity levels across the different phases of the business cycle, but the speed of convergence was greater during periods of contraction in economic activity than during periods of expansion. Second, we find that technology embodied in capital was an important source of productivity growth in agriculture. As with the rate of catch-up, the embodiment effect was much stronger during low economic activity phases of the business cycle.     

STRUCTURAL CHANGES IN CHINA'S ECONOMIC GROWTH DURING THE REFORM PERIOD

We identify some empirical evidences for the structural changes in the determinants of regional growth, disparities and the convergence speed to the per capita GDP equilibrium during the reform period of 1978–1998 in China. We estimate a growth regression model by augmenting the Solow model with a provincial-level panel data set. The existence of conditional convergence is confirmed throughout the reform period, but the convergence speed is faster in the 1990s than the early reform period. Agro-industry-based rural development contributed to regional growth and eased interregional disparities in the early reform period. Foreign capital inflows took a significant leading role for regional growth during the 1990s, but aggravated interregional disparities. Education and non-state enterprises were among the other keys for regional growth throughout the reform period. These results implies that for achieving sustainable and balanced growth in future, it is essential to extend foreign capital investment to the interior regions, in association with further development of human capital resource and non-state local enterprises.     

Introduction to APPC-2018, a Special Issue of the Journal of Productivity Analysis, “Novel Applications of Efficiency and Productivity Analyses in the Asia-Pacific Region”

In this study, an appropriate nonparametric two-step approach to conditional efficiencies is used to investigate how size and time affect the performance of companies. Using a dataset of Italian manufacturing firms over the period 2006–2015, we explore the effect of size on the attainable production set (input-output space) and on the efficiency distribution, without making any a priori assumptions on the role of size on efficiency. Main findings suggest that size positively affects the efficiency of companies. By exploring the idiosyncratic efficiency, an additional empirical result from the conditional efficiency approach shows that the economic disparities between North, Centre and South of Italy not only limit the foreign investment but also seem to penalize the productivity of Italian-owned companies.

     

人力资本与产业结构转化对经济增长的效应分析

本文根据两部门经济增长模型,以1995~2009年中国29个省际数据为对象,运用分位数回归的方法考察了人力资本、产业结构对中国经济增长的影响。理论分析和实证研究均表明：人力资本对经济增长有显著的促进作用,且在条件分布的不同位置,这种作用存在明显差异;产业结构从传统产业向现代产业的转化也是经济增长的重要推动力;人力资本的经济增长效应受产业结构的影响,与人力资本相适应的产业结构转化可以优化人力资本的配置,提高人力资本的产出效率,有助于经济持续、快速地增长。     

Evaluating Productivity Growth Measures in the EU

In this paper we evaluate the productivity growth of the member countries in the European Union (EU) before and after the enforcement of the Maastricht convergence criteria in 1992. Total factor productivity was measured by employing the growth-accounting approach and Tornqvist indices. The evaluation of productivity growth was performed by employing the non-parametric method of Data Envelopment Analysis (DEA) in particular years and within three time periods. DEA was also used to evaluate the relative efficiency of EU members with respect to the convergence criteria with important implications for their economic integration. TFP growth was found to have contributed the most in the EU, while its share in the latest recessions was the smallest as compared to labor and capital share.     

The business cycle human capital accumulation nexus and its effect on hours worked volatility

This paper studies hours worked volatility and the cyclicality of human capital investments by embedding a Ben-Porath life-cycle model of human capital accumulation into an RBC setting. Agents differ across two dimensions: age and productivity in learning. Our results show that individuals invest more in human capital during economic downturns. However, human capital accumulation is more counter-cyclical for young and low-productivity individuals because they face a lower opportunity cost of education and a higher marginal product of human capital. These results are confirmed empirically using US data from the Current Population Survey and the American Time Use Survey. In addition, the paper contributes to the RBC literature by showing that the model׳s business cycle properties, in particular hours worked volatility, are sensitive to assumptions of heterogeneity. Introducing heterogeneity in productivity increases the volatility of aggregate hours worked and changes the life-cycle profile for hours volatility to better match the data.     

New Regionalism contested: some remarks in light of the case of the Mezzogiorno of Italy

This article attempts to re‐consider the debate that has recently developed around the so‐called New Regionalism with reference to the studies regarding the emergence of a ‘new’ competitive Mezzogiorno of Italy. The first two sections of the article are devoted to a critical analysis of the literature on the New Mezzogiorno. It is argued that this literature has, on the one hand, fruitfully called attention to the emerging experiences of regional development in the South of Italy; yet, on the other hand, in throwing positive light on local economic development in the South of Italy, it has underestimated the more troublesome phenomena that these experiences reveal, especially from the point of view of capital‐labour relations. The third section of the article is devoted to showing how the limits and contradictions of the new regionalist approach to local development are reflected in the new course of regional policy that has been embraced in Italy in recent years. Finally, in the concluding section, the article argues for a shift towards a critical approach to research on the Italian southern regions and local productive systems. L'article propose une relecture du débat qui s'est récemment développé autour du Nouveau Régionalisme,è partir des travaux concernant l'émergence d'un ‘nouveau’ Mezzogiorno compétitif en Italie. Les deux premières sections de l'article proposent une analyse critique de la littérature sur le Nouveau Mezzogiorno. D'un côté, celle‐ci a permis, de façon fructueuse, d'attirer l'attention sur l'émergence d'expériences de développement régional dans le Sud italien. De l'autre, en jetant une lumière positive sur le développement économique local dans le Sud de l'Italie, cette littérature a sous‐estimé les aspects les plus problématiques que ces expériences révèlent, en particulier du point de vue des relations entre capital et travail. La troisième partie montre combien le nouveau cours pris par les politiques régionales en Italie reflète les limites et les contradictions de l'approche néo‐régionaliste du développement local. En conclusion, l'article se penche sur la nécessité de développer une approche critique à la recherche sur les régions et les systèmes productifs locaux en Italie du Sud.     

The productivity of transport infrastructure investment: A meta-analysis of empirical evidence

Investments in transport infrastructure have been widely used by decision makers to encourage economic growth, particularly during periods of economic downturn. There has been extensive research on the linkage between transport infrastructure and economic performance since the late 1980s, characterised by widely varying evidence. We conduct a meta-analysis of the empirical evidence on the output elasticity of transport infrastructure, based on a sample of 563 estimates obtained from 33 studies. Previous meta-analyses have focused on total public capital and hence cannot appropriately explain the wide variation in the productivity effect of transport infrastructure nor provide guidance to policymakers on the returns to investment in different types of transport infrastructure. Our results indicate that the existing estimates of the productivity effect of transport infrastructure can vary across main industry groups, tend to be higher for the US economy than for European countries, and are higher for roads compared to other modes of transport. The variation in the estimates of the output elasticity of transport is also explained by differences in the methods and data used in previous studies. Failing to control for unobserved heterogeneity and spurious associations tends to result in higher values, while failing to control for urbanisation and congestion levels leads to omitted variable bias. These findings can be used to inform future research on the choice of model specification and estimation and transport-related policy making.     

Further model-based estimates of US total manufacturing production capital and technology, 1949–2005

Production capital and technology (i.e., total factor productivity) in US manufacturing are fundamental for understanding output and productivity growth of the US economy but are unobserved at this level of aggregation and must be estimated before being used in empirical analysis. Previously, we developed a method for estimating production capital and technology based on an estimated dynamic structural economic model and applied the method using annual SIC data for 1947–1997 to estimate production capital and technology in US total manufacturing. In this paper, we update this work by reestimating the model and production capital and technology using annual SIC data for 1949–2001 and partly overlapping NAICS data for 1987–2005.     

Korean unification prospects: an assessment through the BDN-model

The debate on the possible unification of South Korea and North Korea has often been assessed from the economic perspective, which is insufficient since unification entails not only the integration of two economies but political, social and technological integration of two territories. Using the box negotiation diagram model, this paper expands the scope of the study on South Korea and North Korea unification through a multidisciplinary approach encompassing the political, economic, social and technological perspectives. Given the huge imbalanced points of unification drawn from our analysis, we observed more divergence than convergence hence, hinging the possibility of unification of serious negotiation.     

产业协同发展与城市全要素生产率——中国南北差异视角下的实证检验

制造业和生产性服务业的协同发展是中国经济提质增效的重要途径。使用2001-2018年的中国城市面板数据,测算了产业协同度,并考察了产业协同发展和全要素生产率的关系。结果表明:研究期内,中国城市整体及南方和北方的产业协同度呈现上升态势,但存在明显区域差异,北方的产业协同度低于南方;在南方和北方,产业协同发展可显著提升全要素生产率,影响全要素生产率的作用机制在南方和北方存在差异;学习机制、互补机制和竞争机制可通过促进技术进步和提高技术效率共同推动全要素生产率增长,但南方和北方的影响机制存在显著差异。最后从发挥市场机制、完善保障体系和加快北方地区发展等方面给出了对策建议。     

基于人力资本水平视角的产业集群竞争力研究

产业集群竞争力与人力资本水平具有正相关性。拥有较高人力资本水平的地区产业集群更具竞争力,对增量人力资本的吸纳力也更强。一个地区在致力于产业集群形成与发展的过程中,必须以人力资本水平的提升为政策出发点,形成高水平的专业化的人力资本市场,依靠人力资本的高劳动率,高创新能力和外部的经济与社会的网络资源以提升产业集群生产率,提高产业集群竞争力。     

改革开放以来中国经济增长动力转换的时空特征

基于中国1978~2012年的省级面板数据,采用检验后的超越对数生产函数的随机前沿模型,利用两套资本存量核算方法,对中国经济增长动力的来源及其时空特征进行分析,并对2008年金融危机的4万亿元投资政策进行了效率评价。研究结果表明,中国属于典型的投资主导型经济,资本投入是中国经济增长持续稳定的最主要来源,TFP贡献率呈现逐年下降的趋势;中国经济增长动力由改革开放初期的资本、劳动力和TFP三驾马车平衡拉动,形成了现阶段的资本投入与TFP反向角力态势;区域经济差距主要源于资本投入与TFP双重差异,但TFP差异是最重要因素;4万亿元经济刺激政策下中国经济复苏属于典型的“投资主导型复苏”,是以牺牲中国生产率为代价的,TFP在2008年后呈现断崖式下降,平均拉低中国TFP达0.23~0.32个百分点。     

Embodying Embodiment in a Structural,Macroeconomic Input-Output Model

In this paper, I develop a regression-based system of labour productivity equations that account for capital-embodied technological change and I incorporate this system into IDLIFT, a structural, macroeconomic input-output model of the US economy. Builders of regression-based forecasting models have long had difficulty finding labour productivity equations that exhibit the "Solowian' property that movements in investment should cause accompanying movements in labour productivity. The production theory developed by Solow and others dictates that this causation is driven by the effect of traditional capital deepening as well as technological change embodied in capital. Lack of measurement of the latter has hampered the ability of researchers to estimate properly the productivity-investment relationship. Recent research by Wilson (2001) has alleviated this difficulty by estimating industry-level embodied technological change. In this paper, I utilize those estimates to construct capital stocks adjusted for technological change and then use these adjusted stocks to estimate Solow-type labour productivity equations. It is shown that replacing IDLIFT's former productivity equations, based on changes in output and time trends, with the new equations, results in a convergence between the dynamic behaviour of the model and that predicted by traditional (Solowian) production theory.     

Economic convergence: Policy implications from a heterogeneous agent model

In this paper we study the effectiveness of different types of cohesion policies with respect to convergence of regions. A two-region agent-based macroeconomic model is used to analyze short-, medium- and long-term effects of policies improving human capital and fostering adoption of technologies in lagging regions. With fully integrated labor markets the human capital policy positively affects the economically stronger region but reduces production in the targeted weaker region. Subsidies for high technology investment in the weaker region have a positive local output effect and a negative effect on the neighboring region, thereby fostering convergence. When labor markets are not integrated both policies support convergence.     

POLLUTION'S ROLE IN REDUCING URBAN QUALITY OF LIFE IN THE DEVELOPING WORLD

This paper surveys the recent literature exploring the consequences of urban pollution in the developing world for a city's productivity and resident quality of life. The environmental Kuznets curve literature predicts that developing nations will experience significant environmental degradation as a byproduct of economic development. In contrast, the recent literature that we review reverses this logic by arguing that geographic areas featuring lower levels of pollution will experience economic growth through improvements in health and human capital. In an economy where pollution reduces worker productivity, inhibits child development and repels the skilled from living in such an area, those cities featuring less pollution have a competitive advantage in attracting and retaining the skilled. Given the central role that human capital plays in urban economic growth, such cities will be more likely to achieve sustainable long‐term growth.     

The role of human sustainability in professional service firms. Evidence from Italy

Sustainability is a central topic for an increasing number of companies, as a part of their business strategies. Human sustainability, that is, preserving and improving the quality of human life, in other words, maintaining and advancing human capital, appears as one relevant issue in that context. Humans and human capital are the foremost resources for professional service firms. Their role in the international economic scenario will most likely depend on how they deal with human sustainability and the wellbeing of their people. In this perspective, the paper investigates the antecedents, and organisational implications, of human sustainability in such firms using a structural equation model (SEM) developed on 4,301 questionnaires filled by Italian Chartered Accountants. Findings shed new lights on some implications of human sustainability. Results show that human sustainability has a direct and significative impact on a firm's ability to innovate, fostering creativity and intellectual capital, thus being significant for corporate performance. As a practical implication, firms should accordingly shape their business strategies towards accounting for human sustainability aspects.     

Productivity Growth in the Western Hemisphere (1978–94): The Caribbean in Perspective

Productivity growth, technical efficiency change, and technological change were measured for a sample of 30 countries in the Western Hemisphere for the 1978–1994 period using the Malmquist index. The Caribbean compared unfavorably with North America and the Latin American regions. Evidence indicated some support for the convergence hypothesis. Regression analysis indicated that productivity growth in the Caribbean was positively associated with civil, economic, and political liberty.