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Labour Productivity and Technology Gap in European Regions: A Conditional Frontier Approach

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  • Andrea Filippetti
  • Antonio Peyrache

Abstract

Filippetti A. and Peyrache A. Labour productivity and technology gap in European regions: a conditional frontier approach, Regional Studies . A conditional frontier approach is proposed to capture the role of the technology gap in explaining labour productivity differences in 211 European regions in eighteen countries over the years 1995-2007. Labour productivity growth is driven by capital accumulation and technical change. In lagging behind regions, productivity growth is mainly driven by capital accumulation. The technology gap does not play a role in driving labour productivity growth and remains stable across regions in the considered period. Cohesion policy seems more effective in terms of fixed investment rather than technological capabilities, while technology gap remains a source of unused potential productivity growth.

Suggested Citation

  • Andrea Filippetti & Antonio Peyrache, 2015. "Labour Productivity and Technology Gap in European Regions: A Conditional Frontier Approach," Regional Studies, Taylor & Francis Journals, vol. 49(4), pages 532-554, April.
    • Handle: RePEc:taf:regstd:v:49:y:2015:i:4:p:532-554
    DOI: 10.1080/00343404.2013.799768
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    Cited by:

    1. Cristina Polo & Julián Ramajo & Alejandro Ricci‐Risquete, 2021. "A stochastic semi‐non‐parametric analysis of regional efficiency in the European Union," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 7-24, February.
    2. Bădin, Luiza & Daraio, Cinzia & Simar, Léopold, 2019. "A bootstrap approach for bandwidth selection in estimating conditional efficiency measures," European Journal of Operational Research, Elsevier, vol. 277(2), pages 784-797.
    3. Michele Battisti & Massimo Del Gatto & Christopher F. Parmeter, 2018. "Labor productivity growth: disentangling technology and capital accumulation," Journal of Economic Growth, Springer, vol. 23(1), pages 111-143, March.
    4. David Jordan & John Turner, 2021. "Northern Ireland's Productivity Challenge: Exploring the issues," Insight Papers 004, The Productivity Institute.
    5. Andrés Rodríguez‐Pose, 2020. "Institutions and the fortunes of territories," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 371-386, June.
    6. Ma, Le & Hosseini, M. Reza & Jiang, Weiling & Martek, Igor & Mills, Anthony, 2018. "Energy productivity convergence within the Australian construction industry: A panel data study," Energy Economics, Elsevier, vol. 72(C), pages 313-320.
    7. Jaan Masso & Amaresh K Tiwari, 2021. "Productivity Implications Of R&D, Innovation And Capital Accumulation For Incumbents And Entrants: The Case Of Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 130, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    8. Simone Gitto, 2017. "Efficiency change, technological change and capital accumulation in Italian regions: a sectoral study," International Review of Applied Economics, Taylor & Francis Journals, vol. 31(2), pages 191-207, March.
    9. Maarten Goos & Joep Konings & Marieke Vandeweyer, 2015. "Employment Growth in Europe: The Roles of Innovation, Local Job Multipliers and Institutions," Working Papers of Department of Economics, Leuven 547246, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    10. Kounetas, Kostas & Napolitano, Oreste, 2018. "Modeling the incidence of international trade on Italian regional productive efficiency using a meta-frontier DEA approach," Economic Modelling, Elsevier, vol. 71(C), pages 45-58.
    11. Boris Lavrovskii, 2018. "Assessment of Innovation Intensity: the Case of USA," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 281-291.
    12. Thor Berger & Carl Benedikt Frey, 2016. "Structural Transformation in the OECD: Digitalisation, Deindustrialisation and the Future of Work," OECD Social, Employment and Migration Working Papers 193, OECD Publishing.
    13. Andrea Filippetti & Petros Gkotsis & Antonio Vezzani & Antonio Zinilli, 2020. "Are innovative regions more resilient? Evidence from Europe in 2008–2016," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 807-832, October.
    14. Elias Giannakis & Theofanis P. Mamuneas, 2022. "Labour productivity and regional labour markets resilience in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(3), pages 691-712, June.
    15. Daniele Archibugi & Andrea Filippetti, 2016. "(English) The Retreat of Public Research and its Adverse Consequences on Innovation (Italiano) I cambiamenti nella ricerca pubblica e le conseguenze avverse sull’innovazione," IRPPS Working Papers 94:2016, National Research Council, Institute for Research on Population and Social Policies.
    16. Walheer, Barnabé, 2021. "Labor productivity and technology heterogeneity," Journal of Macroeconomics, Elsevier, vol. 68(C).
    17. Jaan Masso & Amaresh K Tiwari, 2022. "Productivity Implications of R&D, Innovation, and Capital Accumulation for Incumbents and Entrants: Perspectives from a Catching-up Economy," Papers 2205.10540, arXiv.org.
    18. Randolph Luca Bruno & Elodie Douarin & Julia Korosteleva & Slavo Radosevic, 2022. "The Two Disjointed Faces of R&D and the Productivity Gap in Europe," Journal of Common Market Studies, Wiley Blackwell, vol. 60(3), pages 580-603, May.

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