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Sectoral Volatility and Regional Growth in the European Union

Author

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  • Roberto Ezcurra

    (Departamento de Economía, Universidad Pública de Navarra, Campus de Arrosadia s/n, 31006 Pamplona, Spain)

Abstract

I investigate the relationship between short-term instability and output growth in the European regions, using disaggregated data for six manufacturing activities over the period 1980–2006. The results show a positive link between sectoral volatility and growth. This finding is robust to the inclusion of additional explanatory variables in the analysis and is not driven by any specific sector or country. The observed relationship suggests that traditional stabilization policies that attempt to reduce the fluctuations of the business cycle may be harmful for regional growth in the long run.

Suggested Citation

  • Roberto Ezcurra, 2010. "Sectoral Volatility and Regional Growth in the European Union," Environment and Planning C, , vol. 28(2), pages 369-380, April.
    • Handle: RePEc:sae:envirc:v:28:y:2010:i:2:p:369-380
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    Cited by:

    1. Roberto Ezcurra & Vicente Rios, 2015. "Volatility and Regional Growth in Europe: Does Space Matter?," Spatial Economic Analysis, Taylor & Francis Journals, vol. 10(3), pages 344-368, September.

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