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Productivity Polarization across Regions in Europe

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  • Roberto Basile

    (ISAE and CERTeT, Rome r.basile@isae.it)

Abstract

The regional distribution of labor productivity in Western Europe is characterized by a core-periphery spatial pattern: high (low)-productivity regions are in a proximate relationship with other high (low)-productivity regions. Over the period 1980—2003, intradistribution dynamics has generated long-run multiple equilibria with the formation of two clubs of convergence. The observed dynamics can be only marginally explained by nonlinear (threshold) effects in the accumulation of physical capital. In contrast, the joint effect of spatial dependence and nonlinearities in growth behavior plays a key role in determining multiple equilibria and reinforcing polarization of labor productivity.

Suggested Citation

  • Roberto Basile, 2009. "Productivity Polarization across Regions in Europe," International Regional Science Review, , vol. 32(1), pages 92-115, January.
    • Handle: RePEc:sae:inrsre:v:32:y:2009:i:1:p:92-115
    DOI: 10.1177/0160017608326944
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    More about this item

    Keywords

    distribution dynamics; regional convergence; semiparametric additive models; spatial dependence; Europe;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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