Convergence Across Italian Regions and the Role of Technological Catch-Up
This paper suggests that the main (and possibly unique) source of beta- and sigma-convergence in GDP per worker (i.e. labor productivity) across Italian regions over the 1980-2004 period is the change in technical and allocative efficiency, i.e. convergence in relative TFP levels. To obtain this result, I construct an approximation of the production frontier at different points in time using Data Envelope Analysis (DEA), and measure efficiency as the output-based distance from the frontier. This method is entirely data-driven, and does not require the specification of any particular functional form for technology. Changes in GDP per worker can be decomposed into changes in relative efficiency, changes due to overall technological progress, and changes due to capital deepening. My results suggest that: (i) differences in relative TFP are quantitatively important; (ii) while technological progress and capital deepening are the main, and equally important, forces behind the rightward shift in the distribution of GDP per worker, convergence in relative TFP is the main determinant of the change in its shape.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 6 (2006)
Issue (Month): 1 (August)
|Contact details of provider:|| Web page: http://www.degruyter.com|
|Order Information:||Web: http://www.degruyter.com/view/j/bejm|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Adriana Di Liberto & Francesco Pigliaru & Roberto Mura, 2008.
"How to measure the unobservable: a panel technique for the analysis of TFP convergence,"
Oxford Economic Papers,
Oxford University Press, vol. 60(2), pages 343-368, April.
- A. Di Liberto & F. Pigliaru & R. Mura, 2004. "How to measure the unobservable: a panel technique for the analysis of TFP convergence," Working Paper CRENoS 200405, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Adriana Di Liberto & Roberto Mura & Francesco Pigliaru, 2005. "How to Measure the Unobservable: A Panel Technique for the Analysis of TFP Convergence," Working Papers 2005.16, Fondazione Eni Enrico Mattei.
- Robert J. Barro & Paul M. Romer, 1991.
National Bureau of Economic Research, Inc, number barr91-1, September.
- Douglas Gollin, 2002.
"Getting Income Shares Right,"
Journal of Political Economy,
University of Chicago Press, vol. 110(2), pages 458-474, April.
- Francesco Caselli, 2005.
"Accounting for Cross-Country Income Differences,"
CEP Discussion Papers
dp0667, Centre for Economic Performance, LSE.
- Guido Ascari & Valeria di Cosmo, 2005.
"Determinants of total factor productivity in the italian Regions,"
FrancoAngeli Editore, vol. 2005(2).
- Guido Ascari & Valeria Di Cosmo, 2005. "Determinants of Total Factor Productivity in the Italian Regions," Macroeconomics 0511009, EconWPA.
- Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
- Antras, Pol, 2004.
"Is the U.S. Aggregate Production Function Cobb-Douglas? New Estimates of the Elasticity of Substitution,"
3196325, Harvard University Department of Economics.
- Antràs Pol, 2004. "Is the U.S. Aggregate Production Function Cobb-Douglas? New Estimates of the Elasticity of Substitution," The B.E. Journal of Macroeconomics, De Gruyter, vol. 4(1), pages 1-36, April.
- Afriat, Sidney N, 1972. "Efficiency Estimation of Production Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(3), pages 568-98, October.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
When requesting a correction, please mention this item's handle: RePEc:bpj:bejmac:v:topics.6:y:2006:i:1:n:15. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.