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Productivity polarization across regions in Europe

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Author Info
Roberto Basile

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Abstract

The regional distribution of labor productivity in Western Europe is characterised by a Core-Periphery spatial pattern: high (low) productivity regions are in a proximate relationship with other high (low) productivity regions. Over the last twenty years, intra-distribution dynamics has generated long-run multiple equilibria with the formation of two clubs of convergence. The observed dynamics can be only marginally explained by nonlinear effects in the accumulation of physical capital. In contrast, the joint effect of spatial dependence and nonlinearities in growth behavior plays a key role in determining multiple equilibria and reinforcing polarization of labor productivity.

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Paper provided by Università di Perugia, Dipartimento Economia, Finanza e Statistica in its series Quaderni del Dipartimento di Economia, Finanza e Statistica with number 31/2007.

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Length: 49 pages
Date of creation: 10 Apr 2007
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Handle: RePEc:pia:wpaper:31/2007

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Related research
Keywords: distribution dynamics; convergence; spatial dependence; Europe;

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Find related papers by JEL classification:
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
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    Other versions:
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    Other versions:
  5. Roberto Basile, 2008. "Regional economic growth in Europe: A semiparametric spatial dependence approach," Papers in Regional Science, Blackwell Publishing, vol. 87(4), pages 527-544, November. [Downloadable!] (restricted)
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    Other versions:
  8. repec:att:wimass:1920024 is not listed on IDEAS
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    Other versions:
    • Azariadis, Costas & Stachurski, John, 2005. "Poverty Traps," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 5 Elsevier. [Downloadable!] (restricted)
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  26. Liu, Zhenjuan & Stengos, Thanasis, 1999. "Non-linearities in Cross-Country Growth Regressions: A Semiparametric Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 527-38, Sept.-Oct. [Downloadable!]
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    Other versions:
  28. S. N. Wood, 2000. "Modelling and smoothing parameter estimation with multiple quadratic penalties," Journal Of The Royal Statistical Society Series B, Royal Statistical Society, vol. 62(2), pages 413-428. [Downloadable!] (restricted)
  29. Roberto Basile, 2007. "Intra-distribution dynamics of regional per-capita income in Europe: evidence from alternative conditional density estimators," ISAE Working Papers 75, ISAE - Institute for Studies and Economic Analyses - (Rome, ITALY). [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Davide Fiaschi, Andrea Mario Lavezzi and Angela Parenti, 2009. "Counterfactual Distribution Dynamics across European Regions," Discussion Papers 2009/85, Dipartimento di Scienze Economiche (DSE), University of Pisa, Pisa, Italy. [Downloadable!]
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