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.