Counterfactual Distribution Dynamics across European Regions
AbstractThis paper proposes a methodology which combines elements of parametric regression analysis with the nonparametric distribution dynamics approach in order to analyse the role of some variables in the convergence of productivity across European regions over the period 1980-2002. We find that the initial productivity crucially accounts in the convergence process across European regions. Differently, employment growth seems not to play a role, while the Structural and Cohesion Funds seem to play a positive role, even though such effect seems to be very low and statistically significant only at the low bound of the range of initial productivity. The structural change of regional economies plays a positive role, but such e effect is statistically significant only for the least productive regions. The output composition of a region in 1980 a effects the convergence process of productivity growth in several ways. In particular, the share of non market services on output acts like a source of convergence from 1980 to 2002 but in the long-run it plays a negligible role. Finally, the share of finance acts like a force of divergence across European regions, especially for the least productive regions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy in its series Discussion Papers with number 2009/85.
Date of creation: 19 Jun 2009
Date of revision:
European regional policy; structural change; convergence; European regions.;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-28 (All new papers)
- NEP-EEC-2009-07-28 (European Economics)
- NEP-EFF-2009-07-28 (Efficiency & Productivity)
- NEP-GEO-2009-07-28 (Economic Geography)
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.:
- Barro, R.J. & Sala-I-Martin, X., 1991.
"Convergence Across States and Regions,"
Papers, Yale - Economic Growth Center
629, Yale - Economic Growth Center.
- Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
- Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 100(2), pages 223-51, April.
- Roberto Basile, 2009.
"Productivity Polarization across Regions in Europe,"
International Regional Science Review, ,
, vol. 32(1), pages 92-115, January.
- Roberto Basile, 2007. "Productivity polarization across regions in Europe," Quaderni del Dipartimento di Economia, Finanza e Statistica, UniversitÃ di Perugia, Dipartimento Economia, Finanza e Statistica 31/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
- Davide Fiaschi & Marzia Romanelli, 2009.
"Nonlinear dynamics in welfare and the evolution of world inequality,"
Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area
724, Bank of Italy, Economic Research and International Relations Area.
- Davide Fiaschi - Marzia Romanelli, 2009. "Nonlinear Dynamics in Welfare and the Evolution of World Inequality," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2009/81, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
- Andrew B. Bernard & Steven N. Durlauf, 1994.
"Interpreting Tests of the Convergence Hypothesis,"
NBER Technical Working Papers
0159, National Bureau of Economic Research, Inc.
- Bernard, A.B. & Durlauf, S.N., 1994. "Interpreting Tests of the Convergence Hypothesis," Working papers, Wisconsin Madison - Social Systems 9401r, Wisconsin Madison - Social Systems.
- Paul Beaudry & Fabrice Collard & David A. Green, 2005. "Changes in the World Distribution of Output Per Worker, 1960-1998: How a Standard Decomposition Tells an Unorthodox Story," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 741-753, November.
- Fiaschi, Davide & Lavezzi, Andrea Mario, 2007. "Productivity polarization and sectoral dynamics in European regions," Journal of Macroeconomics, Elsevier, Elsevier, vol. 29(3), pages 612-637, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.