Dynamic and spatial approaches to assess the impact of geographical indications on rural areas.

The paper explores the role of Geographical Indications (GIs) in promoting the economic development of European regions. We consider all NUTS3 regions of Italy, France, and Spain between 1993 and 2014, and 728 GIs.. Our research aims to empirically assess the impacts of GIs on labor productivity and employment, for the agricultural and industrial sectors. We rely on a dynamic panel model and considere the spatial variation of the data. The main results show that GIs generate a positive impact on employment, both in the short and the long-run. Moreover, we find that the impact of GIs is not limited to the province where they are produced, but also triggers sizable spillover effects. Our results have important policy implications for further economic research. • GIs generate a significant socioeconomic impact in the short and long run. • The growth in GIs induces a positive employment effect for both agriculture and industry sectors. • The spatial analysis highlights sizable spillover effects of GIs. [ABSTRACT FROM AUTHOR]