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Convergence and growth. Labour productivity dynamics in the European Union

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  • Roberto Martino

Abstract

This paper investigates labour productivity dynamics for 1263 regional economies of the European Union during 1991-2007. Despite convergence is usually found to occur conditionally to economy-wide factors, this study reveals a clear process of unconditional convergence for nancial and business-related market services. Indeed this sector is more likely to be characterised by standardized technologies of production. Such an evidence is not found for manufacturing and aggregate productivity, for which long run distribution dynamics are characterized by bimodality. The decomposition of the growth rate of aggregate labour productivity reveals that pure productivity gains drive growth. Structural change plays a minor role in the process, however it halves the contribution of the manufacturing sector for the richest regions, while it enhances the weight of nancial market services.

Suggested Citation

  • Roberto Martino, 2014. "Convergence and growth. Labour productivity dynamics in the European Union," Working Papers of BETA 2014-18, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2014-18
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    3. Roberto Camagni & Roberta Capello & Giovanni Perucca, 2022. "Beyond productivity slowdown: Quality, pricing and resource reallocation in regional competitiveness," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1307-1330, December.
    4. Neagu Olimpia, 2020. "Real Wage Convergence in Romania: Empirical Evidence Based on Club Converging," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(3), pages 108-117, September.
    5. Bianchini, Stefano & Llerena, Patrick & Martino, Roberto, 2019. "The impact of R&D subsidies under different institutional frameworks," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 65-78.
    6. Roberto Martino, 2021. "Public Investment, Convergence and Productivity Growth in European regions," Working Papers - Economics wp2021_19.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    7. Bhattarai, Keshab & Qin, Weiguang, 2022. "Convergence in labor productivity across provinces and production sectors in China," The Journal of Economic Asymmetries, Elsevier, vol. 25(C).
    8. awel Dobrzanski & Sebastian Bobowski, 2021. "Structural and Productivity Changes in the European Countries During COVID-19 Pandemic," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 872-882.
    9. Magdalena Cyrek & Barbara Fura, 2019. "Employment for Sustainable Development: Sectoral Efficiencies in EU Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 277-318, May.
    10. Li, Lei & Luo, Changtuo, 2023. "Does administrative decentralization promote outward foreign direct investment and productivity? Evidence from China," Economic Modelling, Elsevier, vol. 124(C).
    11. Sarah J. Carrington & Pablo Jiménez‐Ayora, 2021. "Shedding light on the convergence debate: Using luminosity data to investigate economic convergence in Ecuador," Review of Development Economics, Wiley Blackwell, vol. 25(1), pages 200-227, February.
    12. Alina Szewc-Rogalska & Tomasz Jakiel, 2021. "Zmiany strukturalne a wydajność pracy w krajach Europy Środkowej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 63-96.

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    More about this item

    Keywords

    labour productivity; convergence; distribution dynamics; non parametric methods; structural change.;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • 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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