a stimulus for productivity growth of local firms in the same region. … or sector, it is their productivity advantage on the local firm to determine the positive effect on domestic productivity … growth.We test this hypothesis using firm level data for German and Italian company for the 90''s. and we find evidence of a …

labour shares, growth in labour and total factor productivity, and capital deepening. We find (a) MGVA was understated by … productivity and capital deepening has been understated and growth in total factor productivity overstated (e) total factor … productivity growth has not slowed since 1990 but has been accelerating. …