We characterize how the size distribution of plants, within narrowly defined industries, is related to the stock of civic capital at the provincial level. Data on plant size come from Italian censuses. Civic capital turns out to have a positive effect on both the average and standard deviation of size. Looking at several precise points of the plant size distribution, we find that it shifts toward the right and becomes more dispersed where civic capital is high. Furthermore, we explore to what extent the effect is heterogeneous across plants in relation to some specific characteristics. The potential endogeneity of current civic capital is addressed by instrumenting it with historical variables. We conclude that the geographic variation in the stock of civic capital poses substantial constraints on plants’ ability to expand. Understanding this is the key for the implementation of effective industrial policies.

Civic capital and the size distribution of plants: short-run dynamics and long-run equilibrium

MINERVA, GAETANO ALFREDO
2014

Abstract

We characterize how the size distribution of plants, within narrowly defined industries, is related to the stock of civic capital at the provincial level. Data on plant size come from Italian censuses. Civic capital turns out to have a positive effect on both the average and standard deviation of size. Looking at several precise points of the plant size distribution, we find that it shifts toward the right and becomes more dispersed where civic capital is high. Furthermore, we explore to what extent the effect is heterogeneous across plants in relation to some specific characteristics. The potential endogeneity of current civic capital is addressed by instrumenting it with historical variables. We conclude that the geographic variation in the stock of civic capital poses substantial constraints on plants’ ability to expand. Understanding this is the key for the implementation of effective industrial policies.
File in questo prodotto:
Eventuali allegati, non sono esposti

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/191391
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 10
  • ???jsp.display-item.citation.isi??? 9
social impact