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Productivity convergence in the European regions, 1980-2003: a sectoral and spatial approach

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  • Jose Villaverde
  • Adolfo Maza

Abstract

This article analyses the evolution of the EU productivity between 1980 and 2003, both across regions and sectors. By making use of various techniques (cross-section, nonparametric and spatial approaches) it concludes that: (1) the regional and sectoral dispersion of productivity is quite high; (2) the gains experienced in aggregate productivity are due entirely to the sectors productivity growth effect; (3) there is a weak beta-convergence process at the aggregate and sectoral levels; (4) the accounting decomposition of the aggregate productivity convergence process reveals the sectoral productivity growth effect to be the only responsible factor for regional catching-up; (5) finally, there are clear signs of spatial dependence which, when properly addressed, increase the speed of convergence at the aggregate level.

Suggested Citation

  • Jose Villaverde & Adolfo Maza, 2008. "Productivity convergence in the European regions, 1980-2003: a sectoral and spatial approach," Applied Economics, Taylor & Francis Journals, vol. 40(10), pages 1299-1313.
  • Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1299-1313
    DOI: 10.1080/00036840600771361
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    Cited by:

    1. Roberta Colavecchio & Declan Curran & Michael Funke, 2009. "Drifting together or falling apart? The empirics of regional economic growth in post-unification Germany," Applied Economics, Taylor & Francis Journals, vol. 43(9), pages 1087-1098.
    2. Aleberto Alesina & Guido Tabellini & Francesco Trebbi, 2017. "Is Europe an Optimal Political Area?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(1 (Spring), pages 169-234.
    3. David Sondermann, 2014. "Productivity in the euro area: any evidence of convergence?," Empirical Economics, Springer, vol. 47(3), pages 999-1027, November.
    4. repec:bpj:rmeecf:v:13:y:2017:i:1:p:14:n:4 is not listed on IDEAS
    5. ANDRADE, Carlos & PINHO, Carlos & PINHO, Maria de Fátima, 2010. "Exploring Regional Convergence: Evidence From 19 European Countries, 1991-2008," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    6. repec:ksp:journ5:v:5:y:2018:i:1:p:1-11 is not listed on IDEAS
    7. Up Lim & Donghyun Kim, 2015. "Toward Sustainable Economic Growth: A Spatial Panel Data Analysis of Regional Income Convergence in US BEA Economic Areas," Sustainability, MDPI, Open Access Journal, vol. 7(8), pages 1-17, July.
    8. María Hierro & Adolfo Maza, 2010. "Per capita income convergence and internal migration in Spain: Are foreign-born migrants playing an important role?," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 89-107, March.
    9. Eoin O'Leary & Don J. Webber, 2015. "The Role of Structural Change in European Regional Productivity Growth," Regional Studies, Taylor & Francis Journals, vol. 49(9), pages 1548-1560, September.

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