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Relative sources of European regional productivity convergence: A bootstrap frontier approach

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Author Info

  • Enflo, Kerstin

    ()
    (Department of Economic History)

  • Hjertstrand, Per

    ()
    (Department of Economics, Lund University)

Abstract

We address the issue of Western European regional productivity growth and convergence by means of Data Envelopment Analysis (DEA), decomposing labor productivity into efficiency change, technical change and capital accumulation. The decomposition shows that most regions have fallen behind the production frontier in efficiency and that capital accumulation has had a diverging effect on the labor productivity distribution. We also account for the inherent bias and the stochastic elements in the efficiency estimation using bootstrapping methods. We find that the relative ranking of the bias-corrected efficiency scores remains stable after the bias correction and that the DEA successfully identifies the regions on the production frontier as significantly more efficient than other regions.

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Bibliographic Info

Paper provided by Lund University, Department of Economics in its series Working Papers with number 2006:17.

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Length: 22 pages
Date of creation: 14 Aug 2006
Date of revision:
Publication status: Published as Enflo, Kerstin and Per Hjertstrand, 'Relative sources of European regional productivity convergence: A bootstrap frontier approach' in Regional Studies, 2009, pages 643-659.
Handle: RePEc:hhs:lunewp:2006_017

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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
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Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
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Keywords: Bootstrap; DEA; Efficiency; Regional Convergence;

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References

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  1. Daniel J. Henderson & R. Robert Russell, 2005. "Human Capital And Convergence: A Production-Frontier Approach ," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(4), pages 1167-1205, November.
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Citations

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Cited by:
  1. Jakub Growiec, 2012. "The World Technology Frontier: What Can We Learn from the US States?-super-," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(6), pages 777-807, December.
  2. Schiersch, Alexander & Gornig, Martin & Belitz, Heike, 2013. "Is technical progress sectorally concentrated? An empirical analysis for Western European countries," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79725, Verein für Socialpolitik / German Economic Association.
  3. Oleg Badunenko & Daniel Henderson & R. Russell, 2013. "Polarization of the worldwide distribution of productivity," Journal of Productivity Analysis, Springer, vol. 40(2), pages 153-171, October.
  4. Mugera, Amin W. & Langemeier, Michael R., 2008. "Labor Productivity Growth And Convergence In The Kansas Farm Sector: A Tripartite Decomposition Using The Dea Approach," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6069, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Halkos, George & Tzeremes, Nickolaos, 2011. "Regional environmental efficiency and economic growth: NUTS2 evidence from Germany, France and the UK," MPRA Paper 33698, University Library of Munich, Germany.
  6. Portnov, Boris A. & Felsenstein, Daniel, 2010. "On the suitability of income inequality measures for regional analysis: Some evidence from simulation analysis and bootstrapping tests," Socio-Economic Planning Sciences, Elsevier, vol. 44(4), pages 212-219, December.
  7. Kerekes, Monika, 2007. "Analyzing patterns of economic growth: a production frontier approach," Discussion Papers 2007/15, Free University Berlin, School of Business & Economics.
  8. Marta Foddi & Stefano Usai, 2013. "Regional Knowledge Performance in Europe," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 44(2), pages 258-286, 06.
  9. M. Foddi & S. Usai, 2012. "Regional innovation performance in Europe," Working Paper CRENoS 201221, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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