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Spatial And Sectoral Productivity Convergence Between European Regions, 1975-2000

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  • Julie Le Gallo

    ()

  • Sandy Dall’erba

Abstract

This paper analyzes the evolution of labor productivity disparities among 145 European regions over 1975-2000 according to the concepts of sigma- and beta-convergence and emphasizes the importance of including both spatial effects and a disaggregated analysis at a sectoral level. We detect sigma-convergence in aggregate labor productivity and in the service sectors but not in the other sectors. This result can be explained by a transfer of resources from the agricultural sector to the more productive sectors that has been more marked in the poor regions. Empirical results also indicate that the common indicator of sigma-convergence lead to a bias when spatial effects are not included in the analysis. We then estimate beta-convergence models including the relevant spatial effects for each sector. The results show that inequality in productivity levels between core and peripheral regions persist and highlight how convergence speeds and the nature of spatial effects vary from one sector to another.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p191.

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Date of creation: Aug 2005
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Handle: RePEc:wiw:wiwrsa:ersa05p191

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Citations

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Cited by:
  1. Seya, Hajime & Tsutsumi, Morito & Yamagata, Yoshiki, 2012. "Income convergence in Japan: A Bayesian spatial Durbin model approach," Economic Modelling, Elsevier, Elsevier, vol. 29(1), pages 60-71.
  2. Andrew Cassey & Katherine Schmeiser, 2013. "The agglomeration of exporters by destination," The Annals of Regional Science, Springer, Springer, vol. 51(2), pages 495-513, October.
  3. Julie Le Gallo & Yiannis Kamarianakis, 2011. "The Evolution of Regional Productivity Disparities in the European Union from 1975 to 2002: A Combination of Shift-Share and Spatial Econometrics," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 45(1), pages 123-139.
  4. Nicola Pontarollo & Elisa Montresor & Francesco Pecci, 2012. "Sectoral productivity convergence between European regions: does space matter?," ERSA conference papers, European Regional Science Association ersa12p559, European Regional Science Association.
  5. Roberto EZCURRA, 2013. "Polarization Trends Across The European Regions," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 11-26.

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