Working Papers

The Impact of ICT Cluster Support in the Argentine City of Córdoba

AUTHOR(s): Castillo, Victoria , Giuliodori, David , Maffioli, Alessandro , Rodríguez, Alejandro , Rojo, Sofía , Stucchi, Rodolfo
PUBLISHED: March 2014
RELATED TOPICS: Microeconomics


This paper estimates the direct and indirect effects of support received between 2003 and 2007 by information and communications technology (ICT) producers in the city of Córdoba under the Supply Chain Development in the Province of Córdoba Program. Two complementary approaches were considered for estimating indirect effects: externalities associated with job mobility and externalities associated with geographic proximity. The direct-effect and indirect-effect estimates were calculated using a random effects model in which lagged dependent variables control for selection bias. The model is based on the assumption that companies consider past performance when deciding whether or not to participate in the program. Direct and indirect effects were found to be positive and significant on sales as well as on employment, wages, and exports.

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