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Regional Factor Price Convergence Across Four Major European Countries

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Author Info

  • Don Webber
  • Paul White

Abstract

W EBBER D. J. and W HITE P. (2003) Regional factor price convergence across four major European countries, Reg. Studies 37 , 773-782. Neo-classical growth models predict that the free movement of goods and factors will result in the spatial convergence of output and an ensuing convergence of factor prices. Based on distribution free statistics, this paper presents an empirical examination of average factor prices for labour across 58 regions of the EU over the period 1980-94. Using methods of concordance and discordance that identify the presence of switching, persistence, stratification and convergence between individual and groups of regions, our results suggest swings in the trend between factor price convergence and factor price divergence, while switching, persistence and stratification characterize the sample's evolution. W EBBER D. J. et W HITE P. (2003) La convergence re gionale des prix des facteurs a travers quatre grands pays europeens, Reg. Studies 37 , 773-782. Les modeles de croissance neo- classiques predisent que la libre circulation des biens et des facteurs entrainera la convergence geographique de l'output et qu' il s'ensuivra la convergence des prix des facteurs. A partir des statistiques non parametriques, cet article cherche a examiner de facon empirique les prix moyens du facteur travail a travers 58 regions de l'Eu sur la periode qui va de 1980 a 1994. Employant des methodes de concordance et de discordance qui identifient la pre sence de changements, de perseverance, de stratification et de convergence entre des regions particulieres ou entre des groupes de re gions, les resultats laissent voir des revirements de tendance des prix des facteurs convergents par rapport aux prix des facteurs divergents alors que le changement, la perseverance et la stratification caracterisent l'evolution de l'echantillon. W EBBER D. J. und W HITE P. (2003) Konvergenz regionaler Kommissionspreise in vier bedeutenden europaischen Landern, Reg. Studies 37 , 773-782. Neoklassische Wachstumsmodelle sagen voraus, dass die freie Befo rderung von Gutern und Kommissionen zu einer raumlichen Konvergenz des Ertrags, sowie nachfolgender Konvergenz der Kommissionspreise fuhren wird. Gestutzt auf verteilungsfreie Statistiken legt dieser Aufsatz eine empirische Untersuchung durchschnittlicher Kommissionspreise fur Arbeitskra fte in 58 Regionen der EU im Zeitraum 1980-1904 vor. Mittels Methoden der Konkordanz und Diskordanz, welche das Vorkommen von Umstellungen, Beharren, Schichtenbildung und Konvergenz zwischen einzelnen und Gruppen von Regionen herausstellen, deuten die Ergebnisse der Autoren darauf hin, dass es Umschwunge in den Tendenzen zwischen Kommissionspreiskonvergenz und Kommissionspreisdivergenz gibt, wobei Umstellungen, Beharren und Schichtenbildung die Entwicklung der Stichprobe charakterisieren.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 37 (2003)
Issue (Month): 8 ()
Pages: 773-782

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Handle: RePEc:taf:regstd:v:37:y:2003:i:8:p:773-782

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Related research

Keywords: Concordance; Convergence; Factor Rewards; Labour; Regions;

References

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  1. Aloisio Araujo & Alvaro Sandroni, 1999. "On the Convergence to Homogeneous Expectations when Markets Are Complete," Econometrica, Econometric Society, vol. 67(3), pages 663-672, May.
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Cited by:
  1. Don J Webber & Paul White, 2005. "Convergence towards a Steady State Distribution," Working Papers 0502, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  2. Persyn, Damiaan, 2008. "Trade as a Wage Disciplining Device," IZA Discussion Papers 3786, Institute for the Study of Labor (IZA).
  3. Novotný, JOSEF, 2011. "Convergence and divergence in living standards among regions of the enlarged European Union (1992-2006)," MPRA Paper 34145, University Library of Munich, Germany.
  4. Josef Novotný, 2010. "Regional Convergence, Divergence and Other Aspects of Distributional Dynamics of European Regions in the Period 1992-2006," Politická ekonomie, University of Economics, Prague, vol. 2010(2), pages 166-185.

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