Paola Cardamone

R&D spillovers and productivity growth: evidence from Italian manufacturing microdata

Recently the focus of R&D impact on productivity moves from internal to external innovation. This paper assesses the link between R&D spillovers and productivity of 1017 Italian manufacturing firms over 1995–2000. Different proxies of R&D spillovers and several specification tests are used to select a well-behaved fixed effect model. As predicted by various new growth theory models, external R&D exerts a positive and highly significant effect on firms’ productivity growth.

R&D spillovers and firms' performance in Italy Evidence from a flexible production function

Using a translog production function we estimate the impact of R&D spillovers on the output performance of Italian manufacturing firms over the period 1998-2003. Technological flows are measured through an asymmetric similarity index that takes also into account the geographical proximity of firms. Results show that R&D spillovers positively affect firms production and that geography matters in determining the role of the external technology. Moreover, we find that the effect of R&D spillovers is high in the Centre-South of Italy and that the stock of R&D spillovers is Morishima complement to the stock of R&D own-capital.

Evaluating the impact of nonreciprocal trade preferences using gravity models

This article presents new evidence on the impact of Nonreciprocal Preferential Trade Policies (NRPTPs) granted by developed countries to exports from developing countries over the period 1995 to 2003. The analysis has been carried out by using three levels of data aggregation. It accounts for unobservable heterogeneity, endogeneity of the preferential treatment and potential selection bias. We find a positive and significant impact of NRPTPs when considering total exports and total agricultural exports. However, at 2-digit agricultural level the results are heterogeneous.

The value relevance of social reporting: evidence from listed Italian companies

Purpose - This paper aims to test whether the publication of a social report provides information about the firms market value. Its intention is to understand if investors believe the social report has a role equal to that traditionally attributed to accounting variables, i.e., whether the social report is value-relevant in assessing a firms market value. Design/methodology/approach - This paper is deductive. It tests two main hypotheses: first, the social report is value relevant because it explains firm value; second, the social report influences the value-relevance of accounting variables. The study applies the value-relevance analysis on a sample of 178 Italian companies listed on the Milan Stock Exchange. Findings - The estimates show a significant negative correlation between the publication of a social report and the stock price. Furthermore, book value per share accounting information is more relevant for the companies that publish a social report, whereas the relevance of earnings per share does not change for these companies. Originality/value - This paper increases the understanding of the value that markets assign to the social report. It contributes to enriching the literature on the value-relevance analysis applied to non-financial variables and to social report in particular.

Produttività e capitale tecnologico nel settore manifatturiero italiano

This paper estimates the impact of R&D expenditure on productivity at firm level. We use a balanced panel of 385 Italian manufacturing firms in order to provide evidence of the elasticity of capital R&D over the period 1992-1997. We consider an extended production function that includes the firms own R&D capital stock and the spillover effect as inputs, as well as labour, physical and human capital. Final outcomes confirm the relevance of R&D as a source of growth, the R&D capital elasticity being equal to 0.14.

The Impact of EU Preferential Trade Agreements on Foreign Direct Investment

Although North–South preferential trade agreements (PTAs) are expected to affect foreign direct investment (FDI), there is not much evidence to date on the impact of EU PTAs on the pattern of FDI. The aim of this study is to assess the impact of EU PTAs on the outward stocks of FDI of the EU. We estimate a model based on the knowledge‐capital theory of the multinational enterprise over the period 1995–2005 using a sample of 173 host countries. Explanatory variables include measures of the level of bilateral protection and a dummy to capture the impact of deep integration provisions of PTAs. A dynamic panel model with fixed effects is used in order to take into account the dynamic behaviour of FDI and the heterogeneity bias. Results show that EU FDI is both horizontal and vertical. The level of EU protection affects FDI negatively, while the impact of the tariffs applied by host countries varies across groups of partner countries. Deep integration provisions affect EU FDI positively.

The role of R&D spillovers in product and process innovation

The goal of this article is to assess the effectiveness of innovation activities and technological diffusion in Italy. In particular, we provide an econometric evaluation of the impact of technological efforts on the innovative output. Using a panel of 1203 firms over the period 1998 to 2003, we estimate a bivariate probit, which models the probability of introducing product and process innovations. Results show that the probability of implementing a product or a process innovation is positively correlated with innovative activities and negatively correlated with technological spillovers.

Tariffs and EU countries foreign direct investment: Evidence from a dynamic panel model

According to the models of the multinational enterprise tariffs play a fundamental role in determining the pattern of foreign direct investment (FDI). The aim of this paper is to assess the impact of tariffs on the outward stocks of FDI of the European Union (EU). We estimate a model based on the knowledge–capital theory of the multinational enterprise over the period 1995–2008 by using a sample of five EU countries and 24 partner countries. We consider, first, manufacturing sector as a whole and, then, six manufacturing industries defined at the two-digit level of the Nomenclature statistique des activités économiques dans la Communauté européenne (NACE) classification. Explanatory variables include an index of applied bilateral tariffs and a dummy to capture the presence of bilateral investment treaties (BITs). A dynamic panel model is estimated through the generalized method of moments estimator, taking also into account the endogeneity of regressors. The results show that the pattern of EU outward FDI is a mix of vertical and horizontal FDI. BITs in force have a significant and positive impact on the outward FDI. The impact of tariffs varies across industries and countries, suggesting the predominance of horizontal FDI in some industries, and the existence of vertical FDI in others.

Analysing the Impact of Everything But Arms Initiative Using a Gravity Model

This chapter assesses the effectiveness of the Everything But Arms (EBA) initiative launched by the European Union (EU) in 2001. It evaluates whether EBA has been effective in increasing exports from Least Developed Countries (LDC) to the EU, over the period 1995–2006. After arguing that the impact of trade preferences should be estimated by using disaggregated trade flows rather than aggregated trade, the analysis is carried out by considering five products (cloves, coffee, crustaceans, molluscs and vanilla beans) which meet three criteria relating to the export intensity of LDC, the actual preferences of EBA and the intra-year distribution of EU tariffs. The export share of the 5-selected goods with respect to national exports is never marginal and, in many cases, is higher than 60%. From an econometric perspective, we improve the reliability of results by giving great attention to the econometric setting and to measurement of the preferential treatment. The evidence differs from one product to another and this supports the decision to work using disaggregated data because it allows us to gauge the sector specificities which would be hidden when analysing total trade.

Trade Impact of European Union Preferences: An Analysis with Monthly Data

The goal of this chapter is to assess the impact of Preferential Trade Agreements (PTA) on European imports of fresh grapes, pears, apples, oranges and mandarins over the period 2001–2004. Monthly rather than yearly data are used in order to take into account the fact that both imports and protection vary seasonally. Furthermore, we determine a measure of preferential margins by also considering quotas and the entry price system. Finally, in the econometric estimations we control for heterogeneity, endogeneity and zero-trade flows. The results show that the impact of preferential policies granted by the European Union (EU) varies depending on the specific commodity considered.