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The Evolution of Regional Productivity Disparities in the European Union from 1975 to 2002: A Combination of Shift-Share and Spatial Econometrics

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  • Julie Le Gallo
  • Yiannis Kamarianakis

Abstract

Le Gallo J. and Kamarianakis Y. The evolution of regional productivity disparities in the European Union from 1975 to 2002: a combination of shift-share and spatial econometrics, Regional Studies. This paper evaluates the relative significance of the key factors that underlie regional productivity disparities in the European Union: industry mix and structural regional differences. Shift-share decomposition is performed and the outcomes are investigated with exploratory spatial analysis and space-time econometric models. Substantial changes in the spatial patterns of productivity and its determinants can be observed during the study period. Results indicate a decrease in geographical clustering for productivity and both regional and sectoral factors. Spatio-temporal dependencies are essential for correct model specification as their omission results in an overestimation of the effect of the industry mix. [image omitted] Le Gallo J. et Kamarianakis Y. L'evolution des ecarts de productivite regionaux dans l'Union europeenne de 1975 a 2002: la combinaison d'une analyse structurelle-geographique et de l'econometrie spatiale, Regional Studies. Cet article cherche a evaluer l'importance relative des facteurs cles qui etayent les ecarts de productivite regionaux dans l'Union europeenne: la structure industrielle et les differences structurelles regionales. On emploie une analyse structurelle-geographique et examine les resultats a partir d'une analyse exploratoire des donnees spatiales et des modeles econometriques spatio-temporels. Au cours de la periode etudiee, on note d'importantes modifications de la structure geographique de la productivite et de ses determinants. Les resultats laissent voir une diminution du regroupement geographique quant a la productivite et aux facteurs a la fois regionaux et sectoriels. Des dependances spatio-temporelles sont indispensables a la bonne specification des modeles parce que leur exclusion conduit a une surestimation de l'effet de la structure industrielle. Regions europeennes Ecarts de productivite Autocorrelation spatiale Regressions apparemment non liees Le Gallo J. und Kamarianakis Y. Die Entwicklung von Disparitaten bei der regionalen Produktivitat in der Europaischen Union zwischen 1975 und 2002: eine Kombination von Shift-Share- und raumlicher Okonometrie, Regional Studies. In diesem Beitrag untersuchen wir die relative Signifikanz der Schlusselfaktoren fur die Disparitaten hinsichtlich der regionalen Produktivitat in der Europaischen Union: Branchenmischung und strukturelle regionale Unterschiede. Die Ergebnisse einer Shift-Share-Dekomposition werden mit Hilfe einer exploratorischen Raumanalyse und okonometrischer Raum-Zeit-Modelle untersucht. Im untersuchten Zeitraum lassen sich erhebliche Veranderungen in den raumlichen Mustern der Produktivitat und ihrer Determinanten beobachten. Die Ergebnisse weisen hinsichtlich der Produktivitat sowie der regionalen und sektoralen Faktoren auf eine Abnahme der geografischen Clusterbildung hin. Zur richtigen Spezifizierung des Modells sind raumlich-zeitliche Abhangigkeiten wesentlich, da bei ihrer Auslassung die Auswirkung der Branchenmischung uberschatzt wird. Europaische Regionen Disparitaten bei der Produktivitat Raumliche Autokorrelation Scheinbar unverbundene Regressionen (SUR) Le Gallo J. y Kamarianakis Y. La evolucion de las desigualdades de productividad regional en la Union Europea de 1975 a 2002: una combinacion de econometricos shift-share y espaciales, Regional Studies. En este articulo valoramos la importancia relativa de los factores clave que subyacen en las desigualdades de productividad regional en la Union Europea: la combinacion industrial y las diferencias regional estructurales. Investigamos los resultados de una descomposicion mediante el control proporcional-diferencial (shift-share) aplicando un analisis espacial exploratorio y modelos econometricos en el espacio-tiempo. Durante el periodo del estudio pudimos observar cambios significativos en los modelos espaciales de productividad y sus determinantes. Los resultados indican una disminucion en la agrupacion geografica para la productividad y para los factores regionales y sectoriales. Las dependencias en el espacio-tiempo son fundamentales para una especificacion correcta del modelo puesto que al ignorarlas ocurre una sobrevaloracion del efecto de la combinacion industrial. Regiones europeas Desigualdades en la productividad Autocorrelacion espacial Regresiones aparentemente no relacionadas (SUR)

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Bibliographic Info

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

Volume (Year): 45 (2011)
Issue (Month): 1 ()
Pages: 123-139

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Handle: RePEc:taf:regstd:v:45:y:2011:i:1:p:123-139

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Related research

Keywords: European regions; Productivity disparities; Spatial autocorrelation; Seemingly unrelated regressions (SUR);

References

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  1. David Wadley & Phillip Smith, 2003. "Straightening up shift-share analysis," The Annals of Regional Science, Springer, vol. 37(2), pages 259-261, 05.
  2. Julie Le Gallo & Coro Chasco-Yrigoyen, 2006. "Spatial Analysis of Urban Growth in Spain (1900-2001)," ERSA conference papers ersa06p878, European Regional Science Association.
  3. Dall'erba, Sandy & Kamarianakis, Yiannis & Le Gallo, Julie & Plotnikova, Maria, 2005. "Regional Productivity Differentials in Three New Member Countries: What Can We Learn from the 1986 Enlargement to the South?," The Review of Regional Studies, Southern Regional Science Association, vol. 35(1), pages 97-116.
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  5. Julie Le Gallo & Sandy Dall’erba, 2005. "Spatial And Sectoral Productivity Convergence Between European Regions, 1975-2000," ERSA conference papers ersa05p191, European Regional Science Association.
  6. Julie Le Gallo & Sandy Dall'erba, 2006. "Evaluating the Temporal and Spatial Heterogeneity of the European Convergence Process, 1980-1999," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 269-288.
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Cited by:
  1. Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2012. "Classic and Spatial Shift-Share Analysis of State-Level Employment Change in Brazil," Working Papers in Economics 12/08, University of Waikato, Department of Economics.
  2. Eoin O’Leary & Don J. Webber, 2012. "The role of structural change in European regional productivity growth," Working Papers 20121201, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  3. Frank Van Oort & Stefan de Geus & Teodora Dogaru, 2013. "Related Variety and Regional Economic Growth in a Cross-Section of European Urban Regions," Papers in Evolutionary Economic Geography (PEEG) 1312, Utrecht University, Section of Economic Geography, revised Aug 2013.

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