New edition of EIZ Working Papers

In the latest edition of EIZ Working Papers authors Katarina Bačić, Ivana Rašić Bakarić and Sunčana Slijepčević bring the paper “Sources of productivity differentials in manufacturing in post-transition urban South-East Europe”.

The paper analyzes the effects of urbanization and localisation economies on manufacturing firms’ productivity across urban landscapes in post-transition South-East European (SEE) countries. Fixed-effects panel data estimations on a large sample of firms show that the factors accounting for productivity advantages of manufacturing firms in urban post-transition SEE are related to the firms and to the environment in which these firms operate. Firms located in diversified cities benefit from a productivity premium generated in this type of agglomeration, while no evidence was found that the relative specialization across industries has any effect on firm productivity levels.