Spatial agglomeration, global value chains, and productivity: micro-evidence from Italy and Spain

Cainelli, Giulio; Ganau, Roberto; and Giunta, Anna (2018) Spatial agglomeration, global value chains, and productivity: micro-evidence from Italy and Spain Economics Letters, 169. pp. 43-46. ISSN 0165-1765
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We investigate the relationship between spatial agglomeration and firms’ labor productivity in Italy and Spain, examining firm-level heterogeneity in Global Value Chain positioning. We analyze a sample of 4, 025 manufacturing firms during the period from 2010 to 2014 and employ a shift-share instrumental variable approach. We find that agglomeration has a positive effect on labor productivity for suppliers but not for final firms.


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