Search

There is now strong evidence that "soft" institutions are interrelated with the working of the economy. For example, in a geographical setting there is evidence that language borders affect interpersonal relationships, but there is no equivalent evidence regarding the effects of language borders on agglomeration or competition spillovers. This paper examines whether language affects the geographical extension of agglomeration and competition spillovers by observing the geography of employment patterns in a linguistically discontinuous setting. Our findings, for the first time, provide empirical evidence that language borders shape the distance decay of competition spillovers, independent of governance, and institutional issues. [ABSTRACT FROM AUTHOR]

This paper focuses on the relationship between “urbanization economies” and access to bank credit by assessing the role of product variety and economic complexity in affecting local credit market conditions. Using quarterly data on Italian provinces for 2008–2018 and adopting a dynamic (spatial) econometric approach, the work provides robust evidence highlighting how local economic complexity reduces the barriers to accessing local credit markets. With a greater “qualified” diversification (higher economic complexity), banks access successful projects with greater probability and are more willing to grant credit. The estimation results also reveal the existence of long‐run spatial spillover effects. The empirical findings advocate for a nuanced and context‐specific policy framework. By embracing place‐based and mission‐oriented policies encouraging diversification and knowledge diffusion, regions can enhance their economic resilience and provide tailored support to businesses, ensuring their stability and growth even in the face of challenging credit conditions. [ABSTRACT FROM AUTHOR]

This paper aims at analysing how the presence of workers employed in cultural and creative industries (CCIs) is related to regional specialized diversification. From a theoretical perspective, CCIs drive economic development and local innovative capacity by facilitating processes of cross‐fertilization of ideas. This study estimates an entry model analysing the ability of Italian provinces to successfully create new sectoral specializations. The results indicate that the relationship between the share of employees in CCIs and the probability of creating new sectoral specializations is non‐linear, highlighting the need for CCIs‐led policies to achieve a certain level of critical mass to be successful. [ABSTRACT FROM AUTHOR]