Local multipliers at work. (24th March 2020)

• Record Type: Journal Article
• Authors: Cerqua, Augusto; Pellegrini, Guido
• Is Part Of: Industrial and corporate change. Volume 29:Number 4(2020)
• Page Start: 959
• Page End: 977
• Publication Date: 2020-03-24
• Subjects: F16 -- H25 -- J23 -- R23; Organizational change -- Periodicals; Organizational effectiveness -- Periodicals; Industrial management -- Periodicals; 658.4062
• DOI: 10.1093/icc/dtaa004
• Languages: English
• ISSNs: 0960-6491

Abstract

Abstract: We propose a novel evaluation strategy to estimate local multipliers in Italy during 1996–2006. We find the presence of positive multipliers: 0.26–0.33 for the tradable sector (manufacturing) and 0.88–1.13 for the non-tradable sector (construction and services). They are lower than what was previously found for the United States but much higher than those identified for European and Asian countries. The reasons for this finding lie in the higher accuracy of the data, in the relevance of the instrument used, and in the widespread underutilization of production factors.