IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v43y2009i5p643-659.html
   My bibliography  Save this article

Relative Sources of European Regional Productivity Convergence: A Bootstrap Frontier Approach

Author

Listed:
  • Kerstin Enflo
  • Per Hjertstrand

Abstract

Enflo K. and Hjertstrand P. Relative sources of European regional productivity convergence: a bootstrap frontier approach, Regional Studies. This paper addresses the issue of Western European regional productivity growth and convergence by means of data envelopment analysis (DEA), decomposing labour productivity into efficiency change, technical change and capital accumulation. The decomposition shows that most regions have fallen behind the production frontier in efficiency and that capital accumulation has had a diverging effect on the labour productivity distribution. Using bootstrapping methods, the paper also accounts for the inherent bias and the stochastic elements in the efficiency estimation. It is found that the relative ranking of the efficiency scores remains stable after the bias correction, even after controlling for spatially correlated measurement errors, and that the DEA successfully identifies the regions on the production frontier as significantly more efficient than other regions. [image omitted] Enflo K. et Hjertstrand P. Les sources relatives de convergence de la productivite regionale europeenne: une methode 'bootstrap', Regional Studies. A partir de la DEA (data envelopment analysis), cet article cherche a aborder la question de la croissance et de la convergence de la productivite regionale de l'Europe de l'Ouest, en decomposant la productivite du travail en le changement d'efficience, la mutation technique et l'accumulation de capital. La decomposition montre que la plupart des regions se sont laissees distancer par la frontiere de production en termes de l'efficience et que l'accumulation de capital a eu un effet divergent sur la distribution de la productivite du travail. En employant des methodes 'bootstrap', cet article cherche aussi a expliquer le biais inherent et les elements stochastiques dans l'estimation de l'efficience. Il s'avere que le classement relatif des scores d'efficience reste stable une fois corrige du biais, meme apres avoir controle les erreurs de mesure qui sont en correlation sur le plan geographique, et que la DEA identifie avec succes les regions a la frontiere de production comme etant nettement plus efficientes que ne le sont les autres regions. Boostrap Data envelopment analysis (DEA) Efficience Convergence regionale Enflo K. und Hjertstrand P. Relative Quellen der regionalen Produktivitatskonvergenz in Europa: ein Bootstrap-Frontieransatz, Regional Studies. In diesem Beitrag untersuchen wir das Thema des Wachstums und der Konvergenz der regionalen Produktivitat in Westeuropa mit Hilfe einer Data-Envelopment-Analyse (DEA), wobei die Arbeitsproduktivitat in Effizienzanderung, technische Anderung und Kapitalakkumulation aufgegliedert wird. Aus der Aufgliederung geht hervor, dass die meisten Regionen hinsichtlich der Effizienz hinter die Produktionsfrontier gefallen sind und dass sich die Kapitalakkumulation divergierend auf die Verteilung der Arbeitsproduktivitat ausgewirkt hat. Mit Hilfe von Bootstrapping-Methoden werden in diesem Beitrag auch die inharenten Verzerrungen und stochastischen Elemente in der Effizienzschatzung berucksichtigt. Die Ergebnisse zeigen, dass die relative Einstufung der Effizienzwerte nach einer Korrektur der Verzerrung stabil bleibt, selbst wenn auf raumlich korrelierte Messfehler kontrolliert wird, und dass die Regionen an der Produktionsfrontier durch die DEA erfolgreich als signifikant effizienter als andere Regionen identifiziert werden. Bootstrap Data-Envelopment-Analyse (DEA) Effizienz Regionale Konvergenz Enflo K. y Hjertstrand P. Fuentes relativas de la convergencia de productividad regional en Europa: un enfoque de frontera Bootstrap, Regional Studies. En este articulo analizamos la cuestion del crecimiento y la convergencia de productividad regional en Europa occidental segun el metodo de Analisis Envolvente de Datos (AED), descomponiendo la productividad laboral en un cambio de eficacia, el cambio tecnico y la acumulacion de capital. Esta descomposicion demuestra que la mayoria de regiones se quedan por detras de la frontera de produccion en cuanto a la eficacia y que la acumulacion de capital ha tenido un efecto de divergencia en la distribucion de la productividad laboral. Usando metodos de bootstrap, en este articulo explicamos tambien el sesgo inherente y los elementos estocasticos en el calculo de la eficacia. Observamos que una clasificacion relativa de las puntuaciones de eficacia sigue estable despues de corregir los valores de sesgo incluso despues de comprobar si existen errores de medicion correlacionados espacialmente y que el metodo de AED identifica con exito las regiones sobre la frontera de la produccion como significativamente mas eficaces que otras regiones. Bootstrap Analisis Envolvente de Datos (AED) Eficacia Convergencia regional

Suggested Citation

  • Kerstin Enflo & Per Hjertstrand, 2009. "Relative Sources of European Regional Productivity Convergence: A Bootstrap Frontier Approach," Regional Studies, Taylor & Francis Journals, vol. 43(5), pages 643-659.
  • Handle: RePEc:taf:regstd:v:43:y:2009:i:5:p:643-659
    DOI: 10.1080/00343400701874198
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400701874198
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Leopold Simar & Paul Wilson, 2000. "A general methodology for bootstrapping in non-parametric frontier models," Journal of Applied Statistics, Taylor & Francis Journals, vol. 27(6), pages 779-802.
    2. Ben Gardiner & Ron Martin & Tyler Peter, 2004. "Competitiveness, Productivity and Economic Growth across the European Regions," ERSA conference papers ersa04p333, European Regional Science Association.
    3. R. Pala & E. Marrocu & R. Paci, 2000. "Estimation of total factor productivity for regions and sectors in Italy. A panel cointegration approach," Working Paper CRENoS 200016, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    4. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April.
    5. GIJBELS, Irène & MAMMEN, Enno & PARK, Byeong U. & SIMAR, Léopold, 1997. "On estimation of monotone and concave frontier functions," LIDAM Discussion Papers CORE 1997031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Léopold Simar & Paul W. Wilson, 2011. "Performance of the Bootstrap for DEA Estimators and Iterating the Principle," International Series in Operations Research & Management Science, in: William W. Cooper & Lawrence M. Seiford & Joe Zhu (ed.), Handbook on Data Envelopment Analysis, chapter 0, pages 241-271, Springer.
    7. Damien Neven & Claudine Gouymte, 1995. "Regional Convergence in the European Community," Journal of Common Market Studies, Wiley Blackwell, vol. 33(1), pages 47-65, March.
    8. Christophe Kamps, 2005. "The Dynamic Effects of Public Capital: VAR Evidence for 22 OECD Countries," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(4), pages 533-558, August.
    9. Stephanie Aubert & Andreas Stephan, 2000. "Regional Infrastructure Policy and its Impact on Productivity: A Comparison of Germany and France," CIG Working Papers FS IV 00-02, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    10. Joaquin Maudos & Jose Pastor & Lorenzo Serrano, 2000. "Efficiency and Productive Specialization: An Application to the Spanish Regions," Regional Studies, Taylor & Francis Journals, vol. 34(9), pages 829-842.
    11. Carlos Gil Canaleta & Pedro Pascual Arzoz & Manuel Rapún Gárate, 2003. "Productivity, Public Capital and Convergence: A Study of the Spanish Regions," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 94(5), pages 537-553, December.
    12. Luisa Corrado & Ron Martin & Melvyn Weeks, 2005. "Identifying and Interpreting Regional Convergence Clusters across Europe," Economic Journal, Royal Economic Society, vol. 115(502), pages 133-160, March.
    13. Jan Fagerberg & Bart Verspagen, 1996. "Heading for Divergence? Regional Growth in Europe Reconsidered," Journal of Common Market Studies, Wiley Blackwell, vol. 34(3), pages 431-448, September.
    14. Daniel J. Henderson & Valentin Zelenyuk, 2007. "Testing for (Efficiency) Catching-up," Southern Economic Journal, John Wiley & Sons, vol. 73(4), pages 1003-1019, April.
    15. L. Picci, 1995. "Lo Stock di capitale nelle Regioni Italiane," Working Papers 229, Dipartimento Scienze Economiche, Universita' di Bologna.
    16. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    17. Los, Bart & Timmer, Marcel P., 2005. "The 'appropriate technology' explanation of productivity growth differentials: An empirical approach," Journal of Development Economics, Elsevier, vol. 77(2), pages 517-531, August.
    18. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
    19. Joaquin Maudos & Jose Manuel Pastor & Lorenzo Serrano, 2000. "Convergence in OECD countries: technical change, efficiency and productivity," Applied Economics, Taylor & Francis Journals, vol. 32(6), pages 757-765.
    20. Mas, Matilde & Perez, Francisco & Uriel, Ezequiel, 2000. "Estimation of the Stock of Capital in Spain," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(1), pages 103-116, March.
    21. Daniel J. Henderson & R. Robert Russell, 2005. "Human Capital And Convergence: A Production-Frontier Approach ," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(4), pages 1167-1205, November.
    22. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oleg Badunenko & Daniel J. Henderson & Valentin Zelenyuk, 2008. "Technological Change and Transition: Relative Contributions to Worldwide Growth During the 1990s," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(4), pages 461-492, August.
    2. Stavros Rodokanakis, 2006. "“How Effective are the Regional Policies of Convergence in the EU?”," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 59-74.
    3. Danish Ahmed SIDDIQUI & Qazi Masood AHMED, 2019. "Are institutions a crucial determinant of cross country economic efficiency? A two-stage double bootstrap data envelopment analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(618), S), pages 89-114, Spring.
    4. Eckey, Hans-Friedrich & Türck, Matthias, 2007. "Convergence of EU-Regions. A Literature Report," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 10, pages 5-32.
    5. repec:agr:journl:v:1(618):y:2019:i:1(618):p:89-114 is not listed on IDEAS
    6. Jesus Lopez-Rodriguez & Andres Faiña, 2009. "Regional Policy and Convergence in Europe: The Case of Backward Regions," Economics Bulletin, AccessEcon, vol. 29(2), pages 1046-1053.
    7. repec:agr:journl:v:4(621):y:2019:i:4(621):p:241-264 is not listed on IDEAS
    8. Sergio Destefanis & Vania Sena, 2005. "Public capital and total factor productivity: New evidence from the Italian regions, 1970-98," Regional Studies, Taylor & Francis Journals, vol. 39(5), pages 603-617.
    9. Leopold Simar & Valentin Zelenyuk, 2006. "On Testing Equality of Distributions of Technical Efficiency Scores," Econometric Reviews, Taylor & Francis Journals, vol. 25(4), pages 497-522.
    10. Danish Ahmed SIDDIQUI & Qazi Masood AHMED, 2019. "Exploring the role of institutions in cross country Malmquist productivity analysis: A two-stage double bootstrap DEA approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(621), W), pages 241-264, Winter.
    11. Roberto Basile & Sergio de Nardis & Alessandro Girardi, 2001. "Regional inequalities and cohesion policies in the european union," ISAE Working Papers 23, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    12. Eckey, Hans-Friedrich & Türck, Matthias, 2005. "Convergence of EU-regions: A literature report," Volkswirtschaftliche Diskussionsbeiträge 80, University of Kassel, Faculty of Economics and Management.
    13. Walheer, Barnabé, 2016. "Growth and convergence of the OECD countries: A multi-sector production-frontier approach," European Journal of Operational Research, Elsevier, vol. 252(2), pages 665-675.
    14. Harald Badinger & Werner Muller & Gabriele Tondl, 2004. "Regional Convergence in the European Union, 1985- 1999: A Spatial Dynamic Panel Analysis," Regional Studies, Taylor & Francis Journals, vol. 38(3), pages 241-253.
    15. Jakub Growiec, 2013. "On the measurement of technological progress across countries," Bank i Kredyt, Narodowy Bank Polski, vol. 44(5), pages 467-504.
    16. Arbia, Giuseppe & Battisti, Michele & Di Vaio, Gianfranco, 2010. "Institutions and geography: Empirical test of spatial growth models for European regions," Economic Modelling, Elsevier, vol. 27(1), pages 12-21, January.
    17. Kurt Geppert & Andreas Stephan, 2008. "Regional disparities in the European Union: Convergence and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 193-217, June.
    18. Nicky Rogge, 2019. "Regional productivity growth in the EU since 2000: something is better than nothing," Empirical Economics, Springer, vol. 56(2), pages 423-444, February.
    19. Maurseth, Per Botolf, 2001. "Convergence, geography and technology," Structural Change and Economic Dynamics, Elsevier, vol. 12(3), pages 247-276, September.
    20. Carmen López Pueyo & Mª Jesús Mancebón Torrubia, 2009. "Sources of productivity growth and convergence in ict industries: an intertemporal non-parametric frontier approach?," Documentos de Trabajo dt2009-04, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    21. Oleg Badunenko & Daniel Henderson & R. Russell, 2013. "Polarization of the worldwide distribution of productivity," Journal of Productivity Analysis, Springer, vol. 40(2), pages 153-171, October.
    22. Magrini, Stefano, 2004. "Regional (di)convergence," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 62, pages 2741-2796, Elsevier.

    More about this item

    Keywords

    Bootstrap; Data envelopment analysis (DEA); Efficiency; Regional convergence;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:43:y:2009:i:5:p:643-659. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.tandfonline.com/CRES20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.