Abstract
AbstractIn this paper, we analyze the role of economic complexity as a driver of regional labor productivity growth in Italy. The Economic Complexity Index (ECI) measures the multiplicity of knowledge embedded in an economy’s productive structure and can be interpreted as an indicator of “qualified diversity”. We assess the impact ofECIon the distribution dynamics of labor productivity by combining growth regression analysis with conditional density estimates. Counterfactual analysis results suggest thatECIplays a key role in the observed tendency to polarization of regional labor productivity. We also provide evidence of a long-run relationship between labor productivity andECIby using a panel cointegration analysis.
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