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Decomposing Productivity Changes – Romania’s Counties Case

Author

Listed:
  • Cristina LINCARU

    () (National Scientific Research Institute for Labor and Social Protection – INCSMPS)

  • Speranţa PÎRCIOG

    () (National Scientific Research Institute for Labor and Social Protection – INCSMPS)

Abstract

The Sectoral Pattern of Growth at county level in Romania may be characterised by “decomposing output growth per worker within sectoral changes and between sectoral changes”. The Job Generation and Growth Decomposition Tool, or JoGGs (Step 3&5) (World Bank, 2011 & Guide), is applied to ten economic sectors (NACE Rev.2) in all 42 counties (NUTS3 level) during the 2010-2013 period. The contribution of each sector, as well as of the inter-sectoral employment shifts, to the observed growth in total output per worker (real 2010 Euros/worker by county) is treated as lattice data (Anselin, 2002). The results are presented in the Chloropleth classification technique univariate maps, by five classes calculated with Jenks natural interval classification scheme. The contribution of each sector to changes in output per worker linked to employment relocation effects offers an image of the manifestation of structural change as a factor behind growth.

Suggested Citation

  • Cristina LINCARU & Speranţa PÎRCIOG, 2017. "Decomposing Productivity Changes – Romania’s Counties Case," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 166-184, September.
  • Handle: RePEc:rjr:romjef:v::y:2017:i:3:p:166-184
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    References listed on IDEAS

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    Keywords

    output per worker changes; changes in output per worker within sector; movements of labour between sectors; structural changes; Locations with sectors with productivity driven by innovation; Locations with sectors without productivity driven by innovation;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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