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The evolution of regional productivity disparities in the European Union, 1975-2000

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  • Yiannis Kamarianakis

    (Regional Analysis Division & Department of Economics, University of Crete)

  • Julie Le Gallo

    (IERSO)

Abstract

The aim of this paper is to assess the evolution of regional productivity disparities in the European Union. Using a sample of 205 regions and 8 sectors on the 1975-2000 period, we use Esteban’s shift- share analysis to investigate the extent to which the existing interregional inequalities in productivity can be attributed to differences in sectoral composition between regions and/or to uniform productivity gaps across sectors. After a specification search on the bivariate functional forms that relate productivity differentials to their shift-share decomposition, the difference between regional and EU average productivity is regressed on the three shift-share components: industry-mix, differential and allocative (i.e. the covariance between the first two components). In that purpose, spatial seemingly unrelated (SUR) regressions are carried out to study the evolution of the impact of the components on the productivity gap over time, while allowing for intertemporal covariance. Moreover, spatial autocorrelation is also included in the SUR regressions, and its evolution over the period is analyzed. Results indicate that both spatio-temporal dependencies are essential in model specification.

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Bibliographic Info

Paper provided by EconWPA in its series Urban/Regional with number 0312004.

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Date of creation: 12 Dec 2003
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Handle: RePEc:wpa:wuwpur:0312004

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Web page: http://128.118.178.162

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Keywords: European regions; productivity disparities; spatial autocorrelation; SUR;

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Cited by:
  1. Chilian, Mihaela Nona, 2012. "Evolution of Regional and Sub-Regional Disparities in Romania – A Sectoral Shift-Share Analysis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 187-204, March.
  2. Mihaela-Nona Chilian, 2011. "Evolution of Regional Disparities in Romania – A Shift-share Analysis," ERSA conference papers ersa11p827, European Regional Science Association.
  3. Karsten Rusche, . "Quality of Life in the Regions: An Exploratory Spatial Data Analysis for West German Labor Markets," Working Papers 200120, Institute of Spatial and Housing Economics, Munster Universitary.
  4. Alessandro STERLACCHINI & Francesco VENTURINI, 2006. "Is Europe becoming a knowledge-driven economy? Evidence from EU developed regions," Working Papers 253, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

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