This paper aims to assess to what extent deterioration of Italy's trade competitiveness in manufacturing over the decade 1993-2004 has been determined by the evolution of localised comparative advantages in knowledge based industries. Stressing Kaldor's idea of dynamic increasing returns in manufacturing industries, we adopted a spatial econometric approach in order to account for the role of geographical proximity in facilitating the exchange of knowledge flows. We estimated a canonical regional export demand function for the 103 NUTS 3 explicitly introducing specialization in high-tech goods. Export competitiveness is shown to be deeply rooted at the local level with the role of knowledge-based competitiveness declining in the centre and north and world demand remaining the only engine of export growth in the south. © 2008 the author(s). Journal compilation © 2008 Regional Science Association International.
All Science Journal Classification (ASJC) codes
- Geography, Planning and Development
- Environmental Science (miscellaneous)
Ciriaci, D., & Palma, D. (2008). The role of knowledge-based supply specialisation for competitiveness: A spatial econometric approach. Papers in Regional Science, 87(3), 453 - 475. https://doi.org/10.1111/j.1435-5957.2008.00198.x