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Productivity Growth and Convergence between Agriculture and Industry in EU Countries

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  • Carlo Bernini Carri
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    Abstract

    This paper presents estimates of the total factor productivity for 15 European countries at the economy-wide level for the period 1990-2003. Although the TFP estimates are based on the “old” growth theory (omitting human capital given the unavailability of data at the sector level), they are, however, derived from panel analysis, which is more appropriate than the usual time series regressions. The aim of the work is to verify the presence of a convergence process between agriculture and industry within the various countries in terms of both the TFP gap and the labour productivity gap. The conclusion is that in the period examined a convergence process was under way – albeit very slow – in the case of both the TFP and the labour productivity gap. In effect, the different country dynamics work out at a substantial invariance over time for the UE 15 gaps as a whole.

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    Bibliographic Info

    Article provided by Associazione Rossi Doria in its journal QA.

    Volume (Year): (2005)
    Issue (Month): 4 (November)
    Pages:

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    Handle: RePEc:rar:journl:0026

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    Related research

    Keywords: Labour Productivity; Convergence Process;

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    1. R. Paci & R. Pala & E. Marrocu, 2000. "Estimation of total factor productivity for regions and sectors in Italy. A panel cointegration approach," Working Paper CRENoS 200016, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. Ball, V Eldon, et al, 1993. "The Stock of Capital in European Community Agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 20(4), pages 437-50.
    3. Timothy C. Sargent & Edgard R. Rodriguez, . "Labour or Total Factor Productivity: Do We Need to Choose?," Working Papers-Department of Finance Canada 2001-04, Department of Finance Canada.
    4. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
    5. Alan McCunn & Wallace E. Huffman, 2000. "Convergence in U.S. Productivity Growth for Agriculture: Implications of Interstate Research Spillovers for Funding Agricultural Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 370-388.
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