Spatial and sectoral productivity convergence between European regions, 1975-2000
This paper introduces the appropriate econometric methodology and statistical tests to evaluate the spatial and sectoral stability of the labour productivity convergence process of 145 European regions over 1975-2000. Our results display significant "&sgr;"-convergence only in aggregate labour productivity and in the services sectors among peripheral regions. We also show that omitting spatial effects leads to biased measures of "&sgr;"-convergence. We then estimate a pooled "&bgr;"-convergence model including spatial autocorrelation and sectoral differentiation. Spatial and sectoral stability tests reveal which sectors display a convergence process and in which regime they are located. Copyright (c) 2008 the author(s). Journal compilation (c) 2008 RSAI.
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Volume (Year): 87 (2008)
Issue (Month): 4 (November)
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