Regional Development and Diversity/Variety of Firms: The case of Romania

Cristina Lincaru
Mihaela Ghenţa
Draga Atanasiu
Vasilica Ciucă
Codruţa Drăgoiu
Beatrice Chiriac

National Research Institute for Labour and Social Protection, Bucharest Romania – INCSMPS


In this paper we try to find empirical evidence regarding the region diversity by firm characteristics, using spatial data from Tempo (INS Romania database) at NUTS 1, 2 and 3 region level for the period 1997-2008. Using instruments of statistical analysis of spatial data (Anselin, Varga) we try to sketch the spatial pattern of firm agglomerations and the values of the main firm‟s characteristics (size class according to employee‟s number and economic activity by NACE Rev.1 sections). Starting point is represented by the discussion made by Saviotti [1] regarding the efficiency versus diversity/variety in economic development respectively development versus growth. The pattern variation of the regions‟ “profile” by diversity/variety of the firms could offer an image of the structural transformation of economic development tendencies in the last more

Keywords: region development, diversity/variety, spatial pattern, firm agglomeration

Productive specialization and regional development at State level in India

Diniz, Francisco DESG/CETRAD/UTAD

Upadhyay, Vinod NISTADS /CSIR New Delhi

The purpose of this paper is to analyse the specialization of Indian productive structures in 2006, using specialization indicators, namely localization quotient estimation, in order to assess both the relative degree of concentration of a given activity in a certain area and the specialization coefficient, that helps characterize a region‟s economy according to its degree of specialization. Reference variables for specialization analysis purposes are Gross Domestic Product at factor cost at constant price (Base=99-00) and Employment for 2001 and 2006, in an attempt to compare differences observed between productivities, which, in turn, are related to purchasing power evolution within each territorial unit. The main aim of this study was, then, a thorough research into the time-spatial relationship between specialization, productivity and development. read more

Key-words: Sector Specialization, Regional Development, Specialization Index, Location quotient, Specialization Coefficient

Estimating Technical Inefficiency: An Empirical Approach to E.U. Industries

Aikaterini Kokkinou

Department of Economics, University of Glasgow

This paper estimates, incorporating a Transcendental Logarithmic Production Function, the technical efficiency level of different industries in selected E.U. countries. The paper considers panel data for inefficiency effects in stochastic production frontier based on Battese and Coelli (1995), providing translog effects, as well as industry effects. The empirical model accommodates not only heteroscedasticity but also allows the possibility that an industry may not always produce the maximum possible output, given the inputs. Unlike most studies, the paper estimates time – varying technical efficiencies (incorporating „learning – by doing‟ behaviour) as industry-specific fixed effects. Furthermore, the model decomposes total factor productivity (TFP) growth into two components: technological growth (essentially, a shift of production possibility frontier, set by best-practice enterprises) and inefficiency changes (i.e., deviations of actual output level from the production possibility frontier). read more

Key Words: Efficiency, Technical Inefficiency, Stochastic Frontier Model