Determinants of Total Factor Productivity in the Italian Regions

This paper investigates the determinants of TFP for Italian regions. We find strong evidence in favour of the factors commonly suggested by the theoretical literature. In particular, our results points to research activity, human capital, social capital, infrastructures and agglomeration spillovers as the main determinants of TFP differences across Italian regions. Furthermore, we investigate the difference between Northern and Southern regions, finding significant differences, particularly regarding the effects of social capital and crime.