<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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 investment rates in central and northern Italy at a similar level as in Lombardy. The fall in investment has affected the poorest regions, Southern Italy, the most, followed by central Italy and the richest regions of the north of the country the least.</p>
</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 investment rates in central and northern Italy at a similar level as in Lombardy. The fall in investment has affected the poorest regions, Southern Italy, the most, followed by central Italy and the richest regions of the north of the country the least.

Labour productivity in Italian regions: A gravitational model approach

Economics and Business Review

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

{"article-title":"Labour productivity in Italian regions: A gravitational model approach"}

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....

Labour productivity in Italian regions: A gravitational model approach

Data publikacji: 13 lip 2024

Zakres stron: 92 - 117

Otrzymano: 31 paź 2023

Przyjęty: 18 kwi 2024

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

Słowa kluczowe
model of economic growth, labour productivity, Italian regions

© 2024 Katarzyna Filipowicz et al., published by Sciendo

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

Labour productivity in Italian regions: A gravitational model approach

Data publikacji: 13 lip 2024

Zakres stron: 92 - 117

Otrzymano: 31 paź 2023

Przyjęty: 18 kwi 2024

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

Słowa kluczowemodel of economic growth, labour productivity, Italian regions

© 2024 Katarzyna Filipowicz et al., published by Sciendo

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

Słowa kluczowe
model of economic growth, labour productivity, Italian regions