Carnevali, E, Godin, A, Lucarelli, S et al. (1 more author) (2020) Productivity growth, Smith effects and Ricardo effects in Euro Area's manufacturing industries. Metroeconomica, 71 (1). pp. 129-155. ISSN 0026-1386
Abstract
We analyse the determinants of labour productivity across (a sample of) EA member states. We focus on the divergent dynamics before and after the financial crisis, and of core countries relative to peripheral countries. We ground our empirical analysis in Paolo Sylos‐Labini's productivity equations. We test different models, including a Panel 2S‐LS model and a Panel vector autoregression model. Our preliminary findings confirm and strengthen Sylos‐Labini's main insights. Labour productivity in manufacturing industries is strongly and positively correlated with the market size (Smith effect), the relative cost of labour (Ricardo effect), the absolute cost of labour (organization effect) and past investment, whereas it is negatively correlated with current investment. Furthermore, we find evidence that the crisis has affected the size of these effects. Focusing on the core periphery dichotomy, the signs of the effects are the same for both groups of countries, although the Smith, Ricardo and long‐run investment effects are usually stronger for core countries compared to peripheral countries. The opposite holds for the organization effect, while investment effects are less clear.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © 2019 John Wiley & Sons Ltd. This is the peer reviewed version of the following article: Carnevali, E, Godin, A, Lucarelli, S, Veronese Passarella, M. Productivity growth, Smith effects and Ricardo effects in Euro Area's manufacturing industries. Metroeconomica. 2019; 00: 1– 27, which has been published in final form at https://doi.org/10.1111/meca.12270. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. |
Keywords: | EA imbalances; labour productivity; Sylos-Labini |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 08 Jul 2019 08:44 |
Last Modified: | 29 Aug 2021 00:38 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/meca.12270 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:148229 |