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Is cumulative growth in manufacturing productivity slowing down in the EU12 regions?

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  • Stilianos Alexiadis
  • Dimitrios Tsagdis

Abstract

The cumulative causation in the relation between labour productivity and output growth, known as Verdoorn's Law, is empirically tested using data from 109 EU12 regions during the period 1977--2005. Several specifications of Verdoorn's Law are put forward in this paper, which attribute the process of cumulative causation to a series of factors, including manufacturing agglomeration, spatial interaction, and responses to the problems of growth. The findings suggest that, although cumulative causation holds over this period, the slowdown of its pace is, nonetheless, apparent post 1992. Revisions in responses (e.g. policy) along with further research are thus recommended. Copyright The Author 2009. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.

Suggested Citation

  • Stilianos Alexiadis & Dimitrios Tsagdis, 2010. "Is cumulative growth in manufacturing productivity slowing down in the EU12 regions?," Cambridge Journal of Economics, Oxford University Press, vol. 34(6), pages 1001-1017.
  • Handle: RePEc:oup:cambje:v:34:y:2010:i:6:p:1001-1017
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    File URL: http://hdl.handle.net/10.1093/cje/bep070
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    Cited by:

    1. Millemaci, Emanuele & Ofria, Ferdinando, 2016. "Supply and demand-side determinants of productivity growth in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 138-146.
    2. Emanuele Millemaci & Ferdinando Ofria, 2014. "Kaldor-Verdoorn's law and increasing returns to scale: A comparison across developed countries," Journal of Economic Studies, Emerald Group Publishing, vol. 41(1), pages 140-162, January.
    3. Alexiadis, Stilianos & Eleftheriou, Konstantinos, 2011. "Health is wealth: an empirical note across the US states," MPRA Paper 33517, University Library of Munich, Germany.
    4. repec:ilo:ilowps:470930 is not listed on IDEAS
    5. Storm, Servaas. & Naastepad, C.W.M., 2012. "Wage-led or profit-led supply : wages, productivity and investment," ILO Working Papers 994709303402676, International Labour Organization.

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