Productivity Growth and Convergence between Agriculture and Industry in EU Countries
This paper presents estimates of the total factor productivity for 15 European countries at the economy-wide level for the period 1990-2003. Although the TFP estimates are based on the “old” growth theory (omitting human capital given the unavailability of data at the sector level), they are, however, derived from panel analysis, which is more appropriate than the usual time series regressions. The aim of the work is to verify the presence of a convergence process between agriculture and industry within the various countries in terms of both the TFP gap and the labour productivity gap. The conclusion is that in the period examined a convergence process was under way – albeit very slow – in the case of both the TFP and the labour productivity gap. In effect, the different country dynamics work out at a substantial invariance over time for the UE 15 gaps as a whole.
Volume (Year): (2005)
Issue (Month): 4 (November)
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