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Spatial and sectoral productivity convergence between European regions, 1975-2000


  • Julie Le Gallo
  • Sandy Dall'erba


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.

Suggested Citation

  • Julie Le Gallo & Sandy Dall'erba, 2008. "Spatial and sectoral productivity convergence between European regions, 1975-2000," Papers in Regional Science, Wiley Blackwell, vol. 87(4), pages 505-525, November.
  • Handle: RePEc:bla:presci:v:87:y:2008:i:4:p:505-525

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    1. Seya, Hajime & Tsutsumi, Morito & Yamagata, Yoshiki, 2012. "Income convergence in Japan: A Bayesian spatial Durbin model approach," Economic Modelling, Elsevier, vol. 29(1), pages 60-71.
    2. Nicola Pontarollo, 2016. "Sectoral Productivity, Convergence And Space Between European Regions," Journal of Smart Economic Growth, , vol. 1(1), pages 1-27, August.
    3. Cardenete, Manuel Alejandro & Delgado, M. Carmen, 2015. "A simulation of impact of withdrawal European funds on Andalusian economy using a dynamic CGE model: 2014–20," Economic Modelling, Elsevier, vol. 45(C), pages 83-92.
    4. Domenica Panzera & Paolo Postiglione, 2014. "Economic growth in Italian NUTS 3 provinces," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 273-293, August.
    5. repec:seg:012016:v:1:y:2016:i:1:p:1-17 is not listed on IDEAS
    6. Roberto EZCURRA, 2013. "Polarization Trends Across The European Regions," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 38, pages 11-26.
    7. repec:bpj:rmeecf:v:13:y:2017:i:1:p:14:n:4 is not listed on IDEAS
    8. Mark Roberts & Mark Setterfield, 2010. "Endogenous Regional Growth: A Critical Survey," Chapters,in: Handbook of Alternative Theories of Economic Growth, chapter 21 Edward Elgar Publishing.
    9. Philipp Piribauer, 2016. "Heterogeneity in spatial growth clusters," Empirical Economics, Springer, vol. 51(2), pages 659-680, September.
    10. Amjad Naveed & Nisar Ahmad, 2016. "Labour productivity convergence and structural changes: simultaneous analysis at country, regional and industry levels," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-17, December.
    11. Nicola Pontarollo & Elisa Montresor & Francesco Pecci, 2012. "Sectoral productivity convergence between European regions: does space matter?," ERSA conference papers ersa12p559, European Regional Science Association.
    12. 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, vol. 45(1), pages 123-139.
    13. Andrew Cassey & Katherine Schmeiser, 2013. "The agglomeration of exporters by destination," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(2), pages 495-513, October.

    More about this item

    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods


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