Advanced Search
MyIDEAS: Login to save this article or follow this journal

Spatial and sectoral productivity convergence between European regions, 1975-2000

Contents:

Author Info

  • Julie Le Gallo
  • Sandy Dall'erba

Abstract

This paper introduces the appropriate econometric methodology and statistical tests to evaluate the spatial and sectoral stability of the labour productivity convergence process of 145 European regions over 1975-2000. Our results display significant "&sgr;"-convergence only in aggregate labour productivity and in the services sectors among peripheral regions. We also show that omitting spatial effects leads to biased measures of "&sgr;"-convergence. We then estimate a pooled "&bgr;"-convergence model including spatial autocorrelation and sectoral differentiation. Spatial and sectoral stability tests reveal which sectors display a convergence process and in which regime they are located. Copyright (c) 2008 the author(s). Journal compilation (c) 2008 RSAI.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1435-5957.2007.00159.x
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Wiley Blackwell in its journal Papers in Regional Science.

Volume (Year): 87 (2008)
Issue (Month): 4 (November)
Pages: 505-525

as in new window
Handle: RePEc:bla:presci:v:87:y:2008:i:4:p:505-525

Contact details of provider:
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1056-8190

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 37(1), pages 112-156, March.
  2. Maria Abreu & Henri L.F. de Groot & Raymond J.G.M. Florax, 2004. "Space and Growth," Tinbergen Institute Discussion Papers 04-129/3, Tinbergen Institute.
  3. Carlino, Gerald & Mills, Leonard, 1996. "Are U.S. regional incomes converging? Reply," Journal of Monetary Economics, Elsevier, Elsevier, vol. 38(3), pages 599-601, December.
  4. Quah, Danny, 1993. " Galton's Fallacy and Tests of the Convergence Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 95(4), pages 427-43, December.
  5. Steven N. Durlauf & Danny T. Quah, 1998. "The New Empirics of Economic Growth," NBER Working Papers 6422, National Bureau of Economic Research, Inc.
  6. Bernard, Andrew B & Jones, Charles I, 1996. "Productivity and Convergence across U.S. States and Industries," Empirical Economics, Springer, Springer, vol. 21(1), pages 113-35.
  7. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1286, C.E.P.R. Discussion Papers.
  8. Konstantinos A. Melachroinos & Nigel Spence, 1998. "Capital and labour productivity convergence of manufacturing industry in the regions of Greece," ERSA conference papers ersa98p69, European Regional Science Association.
  9. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(437), pages 1019-36, July.
  10. Sandy Dall’erba, 2005. "Productivity convergence and spatial dependence among Spanish regions," Journal of Geographical Systems, Springer, Springer, vol. 7(2), pages 207-227, 06.
  11. Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, American Economic Association, vol. 86(5), pages 1216-38, December.
  12. Danny Quah, 1992. "Empirical Cross-Section Dynamics in Economic Growth," FMG Discussion Papers, Financial Markets Group dp154, Financial Markets Group.
  13. Durlauf, S.M. & Johnson, P.A., 1995. "Multiple Regimes and Cross-Country Growth Behavior," Working papers, Wisconsin Madison - Social Systems 9419r, Wisconsin Madison - Social Systems.
  14. Raffaele Paci & Francesco Pigliaru, 1999. "Is dualism still a source of convergence in Europe?," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 31(11), pages 1423-1436.
  15. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 100(2), pages 223-51, April.
  16. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
  17. Somik V. Lall & Zmarak Shalizi, 2003. "Location and Growth in the Brazilian Northeast," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 43(4), pages 663-681.
  18. Sergio J. Rey & Boris Dev, 2004. "Sigma-convergence in the presence of spatial effects," Urban/Regional, EconWPA 0404008, EconWPA, revised 22 Apr 2004.
  19. Aten, Bettina, 1996. "Evidence of Spatial Autocorrelation in International Prices," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 42(2), pages 149-63, June.
  20. N Vagionis & N Spence, 1994. "Total factor regional productivity in Greece," Environment and Planning C: Government and Policy, Pion Ltd, London, Pion Ltd, London, vol. 12(4), pages 383-407, August.
  21. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, American Economic Association, vol. 76(5), pages 1072-85, December.
  22. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, Elsevier, vol. 40(3-5), pages 951-958, April.
  23. Magrini, Stefano, 1999. "The evolution of income disparities among the regions of the European Union," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 29(2), pages 257-281, March.
  24. Esteban, J., 2000. "Regional convergence in Europe and the industry mix: a shift-share analysis," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 30(3), pages 353-364, May.
  25. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, Econometric Society, vol. 48(4), pages 817-38, May.
  26. Martin Carree & Luuk Klomp, 1997. "Testing The Convergence Hypothesis: A Comment," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 683-686, November.
  27. Carlino, Gerald A. & Mills, Leonard, 1996. "Testing neoclassical convergence in regional incomes and earnings," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 26(6), pages 565-590, December.
  28. P Bodson & D Peeters, 1975. "Estimation of the coefficients of a linear regression in the presence of spatial autocorrelation. An application to a Belgian labour-demand function," Environment and Planning A, Pion Ltd, London, vol. 7(4), pages 455-472, April.
  29. Gregory Mankiw, 1995. "The Growth of Nations," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 275-326.
  30. Bernard, A.B. & Jones, C.I., 1993. "Productivity Across Industries and Countries: Time Series Theory and Evidence," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 93-17, Massachusetts Institute of Technology (MIT), Department of Economics.
  31. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 26(1), pages 77-104, February.
  32. Enrique Lopez Bazo & Esther Vaya Valcarce & Antonio Jose Mora & Jordi Surinach Caralt, 1997. "Regional economic dynamics and convergence in the european union," Working Papers in Economics, Universitat de Barcelona. Espai de Recerca en Economia 12, Universitat de Barcelona. Espai de Recerca en Economia.
  33. Julie Le Gallo & Catherine Baumont & Sandy Dall'erba & Cem Ertur, 2005. "On the property of diffusion in the spatial error model," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 12(9), pages 533-536.
  34. Enrique López-Bazo & Esther Vayá & Manuel Artís, 2004. "Regional Externalities And Growth: Evidence From European Regions," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 44(1), pages 43-73.
  35. Bernard Fingleton, 2001. "Equilibrium and Economic Growth: Spatial Econometric Models and Simulations," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 41(1), pages 117-147.
  36. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(4), pages 1127-70, November.
  37. Chi-Young Choi, 2004. "A Reexamination of Output Convergence in the U.S. States: Toward Which Level(s) are they Converging?," Journal of Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 44(4), pages 713-741.
  38. Paci, Raffaele & Pigliaru, Francesco, 1997. "Structural change and convergence: an Italian regional perspective," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 8(3), pages 297-318, August.
  39. R. Paci & F. Pigliaru, 1997. "European regional growth: do sectors matter?," Working Paper CRENoS 199703, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  40. Sergio Rey & Brett Montouri, 1999. "US Regional Income Convergence: A Spatial Econometric Perspective," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 33(2), pages 143-156.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Julie Le Gallo & Yiannis Kamarianakis, 2011. "The Evolution of Regional Productivity Disparities in the European Union from 1975 to 2002: A Combination of Shift-Share and Spatial Econometrics," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 45(1), pages 123-139.
  2. Seya, Hajime & Tsutsumi, Morito & Yamagata, Yoshiki, 2012. "Income convergence in Japan: A Bayesian spatial Durbin model approach," Economic Modelling, Elsevier, Elsevier, vol. 29(1), pages 60-71.
  3. Roberto EZCURRA, 2013. "Polarization Trends Across The European Regions," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 11-26.
  4. Nicola Pontarollo & Elisa Montresor & Francesco Pecci, 2012. "Sectoral productivity convergence between European regions: does space matter?," ERSA conference papers ersa12p559, European Regional Science Association.
  5. Andrew Cassey & Katherine Schmeiser, 2013. "The agglomeration of exporters by destination," The Annals of Regional Science, Springer, Springer, vol. 51(2), pages 495-513, October.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:presci:v:87:y:2008:i:4:p:505-525. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.