Labour productivity in Italian regions: A gravitational model approach

Authors

  • Katarzyna Filipowicz Department of Mathematical Economics, Jagiellonian University, Cracow, Poland https://orcid.org/0000-0003-2131-0414
  • Oleksij Kelebaj Faculty of Management and Social Communication, Jagiellonian University, Cracow, Poland; Institute of Finance, College of Economics, Finance and Law, Cracow University of Economics https://orcid.org/0000-0001-6037-1231
  • Tomasz Tokarski Department of Mathematical Economics, Jagiellonian University, Cracow, Poland https://orcid.org/0000-0002-9551-0892

DOI:

https://doi.org/10.18559/ebr.2024.2.1027

Keywords:

model of economic growth, labour productivity, Italian regions

Abstract

The aim of the paper is to assess the causes of spatial variations in labour productivity of Italian regions using the gravitational model of economic growth. The model is an extension of Robert Solow’s economic growth model. The model parameters are calibrated using historical data and numerical simulations of the long-run equilibrium states of the model are carried out. The scenarios considered in the paper vary in forecast investment rates, employment growth rates and urbanisation rates. Based on the results of numerical simulations, it is claimed that to achieve the full convergence in labour productivity, it is necessary to maintain higher investment rates in the south of the country than in Lombardy (by about 4%–11%), and to keep invest-ment rates in central and northern Italy at a similar level as in Lombardy. 

JEL Classification

Single Equation Models • Single Variables (C2)
Production (E23)
Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence (O47)
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes (R11)

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Published

2024-06-04

Issue

Vol. 10 No. 2 (2024)

Section

Research article- regular issue

License

Copyright (c) 2024 Oleksij Kelebaj, Katarzyna Filipowicz, Tomasz Tokarski

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Filipowicz, K., Kelebaj, O., & Tokarski, T. (2024). Labour productivity in Italian regions: A gravitational model approach. Economics and Business Review, 10(2), 92-117. https://doi.org/10.18559/ebr.2024.2.1027

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