Dokumentation for analyser af erhvervsstruktur og produktivitetsvækst

Abstract:

The working paper describes the method used in Danish Economy, Spring 2003 to analyse the effect of regional economic specialisation on regional productivity growth. The analyses of the paper test whether regional economic specialisation or diversification leads to positive externalities between firms, so-called Marshall-Arrow-Romer or Jacobs externalities. Externalities are identified by regressing wages in regions and sectors on indicators of industrial structure in the regions. Controls for the educational composition and the experience level of the labour force, the level of economic activity, physical capital inputs, level of competition and many other determinants of regional and sectoral wages are included. The novel feature of the analyses is that individual workers’ wages are corrected for workers’ individual human capital, which allows for an improved identification of the effect of externalitities on wages.

The main findings of the paper is that neither regional specialisation nor regional diversification appear to affect wages. Education, however, appears to give rise to significant externalities.