The Annals of Regional Science

, Volume 59, Issue 1, pp 255–279 | Cite as

Local manufacturing productivity markers: an empirical study of the Italian counties

  • Stefano ManzocchiEmail author
  • Beniamino Quintieri
  • Gianluca Santoni
Original Paper


We analyse productivity differentials across about 63,000 manufacturing firms located in 103 Italian counties, in order to shed light on the relation between the business environment and firm performance. We find that a limited set of local variables related to institutional quality, local credit development, market access and innovation environment significantly contribute to explaining manufacturing productivity differentials in Italy. Our empirical findings confirm that firm competitiveness reacts to the local business environment on a multidimensional scale. This suggests that better targeted regional policies at the national and EU level, including measures for fostering convergence or decentralizing wage negotiations, should take into account the interdependence between productivity and the economic environment.

JEL Classification

R11 R15 L60 



We would like to acknowledge comments from Tullio Buccellato, Maurizio Fiaschetti, Fabiano Schivardi, participants in conferences held at LUISS, Rome and the Sant’Anna School in Pisa, as well as two anonymous referees.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2017

Authors and Affiliations

  • Stefano Manzocchi
    • 1
    Email author
  • Beniamino Quintieri
    • 2
  • Gianluca Santoni
    • 3
  1. 1.Department of Economics and FinanceLUISS UniversityRomeItaly
  2. 2.Department of EconomicsUniversity of Rome Tor VergataRomeItaly
  3. 3.CEPIIParisFrance

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