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Industrial Structure and the European Productivity Growth Divergence

Project description

Understanding the north-south industrial divide

Europe is facing an underlying productivity gap between north and south. One reason for this could be the industrial structures. The EU-funded ISEProD project will merge insights and new techniques from industrial organisation and corporate finance to assess the causes and consequences of different industrial structures. Specifically, the project will pursue four different work packages. The first concerns the role of firm ownership, control and risk taking. The second reviews skills supply and the effects of the education of entrepreneurs and managers. The third is the industrial structure, as well as input/output relationships with IT adoption. The fourth is access to finance with asymmetric information and imperfectly competitive financial markets.

Objective

"The last two decades have witnessed substantial progress in the measurement of productivity. However, our understanding of the deep determinants of productivity growth is still limited. This is important in the face of both the global productivity slowdown emerged since mid 2000s and the large productivity growth divide in Continental Europe between the North and the South. I hypothesize that ownership, control and finance (in short ""industrial structure'', IS) play a key role and that their importance, due to technological change, has grown over time. I plan to merge insights and state-of-the-art techniques from industrial organization and corporate finance to assess the causes and consequences of different ISs. Methodologically, I will use a combination of unique data sources (credit register, matched employer-employee data, firm input-output relationships), quasi-experimental design (changes in the banking regulation, executives mortality shocks in local labor markets) as well as structural techniques (selection models and Bayesian learning models) to address the fundamental identification issues that plague the literature. I also plan a major data collection effort in four European countries to study succession in family firms.

The project will pursue four specific objectives in four deeply integrated work packages: a) The role of firm ownership and control on skill acquisition and risk taking; b) Skills supply: the effects of the education of entrepreneurs and managers; c) Industrial structure, input/outut relationships and IT adoption; d) Access to finance with asymmetric information and imperfectly competitive financial markets. The ambition is to generate a discontinuous change in our understanding of the relationship between corporate governance/finance and productivity growth. On the way, I expect to contribute to the key debate for the future of the European Union on the diverging productivity performance of European economies.
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Keywords

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Programme(s)

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Topic(s)

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Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-ADG - Advanced Grant

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Call for proposal

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(opens in new window) ERC-2018-ADG

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Host institution

LUISS LIBERA UNIVERSITA INTERNAZIONALE DEGLI STUDI SOCIALI GUIDO CARLI
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 944 581,00
Address
VIALE POLA 12
00198 Roma
Italy

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Region
Centro (IT) Lazio Roma
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 944 581,00

Beneficiaries (1)

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