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TFP Convergence Across European Regions: A Comparative Spatial Dynamics Analysis

In: Geography, Institutions and Regional Economic Performance

Author

Listed:
  • Adriana Liberto

    (Università di Cagliari and Crenos)

  • Stefano Usai

    (Università di Cagliari and Crenos)

Abstract

This paper proposes a fixed-effect panel methodology to estimate Total Factor Productivity and investigate the spatial dimension of regional EU TFP from both a static and a dynamic perspective. The sample includes 199 regions in EU15 (plus Norway and Switzerland) between 1985 and 2006. First of all, we find the absence of an overall process of convergence, since TFP dispersion is virtually constant along time. Furthermore, exploratory spatial data techniques show that there are interesting interregional dynamic patterns. We find that polarization patterns in Europe have significantly changed along time. Overall, results suggest that only few TFP leaders are emerging and they are distancing themselves from the rest, while the cluster of low TFP regions is widening.

Suggested Citation

  • Adriana Liberto & Stefano Usai, 2013. "TFP Convergence Across European Regions: A Comparative Spatial Dynamics Analysis," Advances in Spatial Science, in: Riccardo Crescenzi & Marco Percoco (ed.), Geography, Institutions and Regional Economic Performance, edition 127, pages 39-58, Springer.
    • Handle: RePEc:spr:adspcp:978-3-642-33395-8_3
    DOI: 10.1007/978-3-642-33395-8_3
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    Citations

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    Cited by:

    1. Francesco Aiello & Fernanda Ricotta, 2014. "Firm heterogeneity in productivity across Europe. What explains what?," ERSA conference papers ersa14p808, European Regional Science Association.
    2. Tomasz Kijek & Anna Matras-Bolibok, 2020. "Knowledge-intensive Specialisation and Total Factor Productivity (TFP) in the EU Regional Scope," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 68(1), pages 181-188.
    3. Johanna Vogel, 2015. "The two faces of R&D and human capital: Evidence from Western European regions," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 525-551, August.
    4. Vasilev, Aleksandar & Gesheva, Nadezhda, 2017. "Revisiting the Invisible Hand Hypothesis: A Comparative Study between Bulgaria and Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(1), pages 45-77.
    5. Edinaldo Tebaldi, 2016. "The Dynamics of Total Factor Productivity and Institutions," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 41(4), pages 1-25, December.
    6. Amjad Naveed & Nisar Ahmad, 2016. "Technology Spillovers and International Borders: A Spatial Econometric Analysis," Journal of Borderlands Studies, Taylor & Francis Journals, vol. 31(4), pages 441-461, October.
    7. Thomas Schatzer & Matthias Siller & Janette Walde & Gottfried Tappeiner, 2019. "The Impact of Model Choice on Estimates of Regional TFP," International Regional Science Review, , vol. 42(1), pages 98-116, January.
    8. G. V. Zhdan & I. V. Shchetinina & Yu. P. Voronov, 2017. "Reindustrialization of the economies of rural territories (a case study of Novosibirsk oblast)," Regional Research of Russia, Springer, vol. 7(4), pages 342-351, October.
    9. Tomasz Kijek & Anna Matras-Bolibok, 2019. "Spatial Distribution of Total Factor Productivity (TFP) in the EU Regional Scope," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 388-397.
    10. Martí-Henneberg, Jordi, 2017. "The influence of the railway network on territorial integration in Europe (1870–1950)," Journal of Transport Geography, Elsevier, vol. 62(C), pages 160-171.

    More about this item

    Keywords

    TFP; Technology catching up; Panel data; Exploratory spatial data analysis;
    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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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