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

Is There Long Run Industrial Convergence in Europe?

Contents:

Author Info

  • Rossana Galli
Registered author(s):

    Abstract

    This paper examines whether convergence is occurring at the industry level in 11 EU countries from 1960 to 1993. Both time series and non-parametric (σ-convergence) methods are applied. Using time series analysis we test whether there is within sector convergence towards a common steady state. Although we adopt a very flexible definition of steady state, allowing for two stochastic trends, given by the sector-specific technology and by the country-specific characteristics, as well as a time trend, we find very little evidence for convergence. Results indicate that the deviation of the national trends from the European average trend are persistent, and that EU countries do not respond to the same long run driving processes, but only to the same short run shocks. From σ-convergence analysis we find that convergence in aggregate productivity does not hold uniformly at the industry level: some sectors, such as communications, distribution and non-market services, present strong evidence of convergence, and some others, mainly manufactures, show substantial divergence. However, interestingly, we find that productivity was strongly converging within all sectors in 1960-73, whereas it shows a general tendency to diverge after 1985. We interpret the switch from convergence to divergence as the effect of a process of radical change, driven by information technologies, affecting all industries in the last two decades. We arrive at the general conclusion that convergence is not an inevitable process, but rather a cyclical phenomenon alternating with divergence.

    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.tandfonline.com/doi/abs/10.1080/02692179700000023
    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 Taylor & Francis Journals in its journal International Review of Applied Economics.

    Volume (Year): 11 (1997)
    Issue (Month): 3 ()
    Pages: 333-368

    as in new window
    Handle: RePEc:taf:irapec:v:11:y:1997:i:3:p:333-368

    Contact details of provider:
    Web page: http://www.tandfonline.com/CIRA20

    Order Information:
    Web: http://www.tandfonline.com/pricing/journal/CIRA20

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

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

    Cited by:
    1. Efthymios Tsionas, 2000. "Regional Growth and Convergence: Evidence from the United States," Regional Studies, Taylor & Francis Journals, vol. 34(3), pages 231-238.
    2. Sondermann, David, 2012. "Productivity in the euro area: any evidence of convergence?," Working Paper Series 1431, European Central Bank.

    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:taf:irapec:v:11:y:1997:i:3:p:333-368. 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: (Michael McNulty).

    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.