Is dualism still a source of convergence in Europe?
This paper aims at assessing whether dualistic mechanisms represent a significant component of the aggregate labour productivity convergence observed across the European regions in the 1980s. The potential of an explanation of convergence based – in part, at least – on the existence of dualism in some of the initially poorer regions has been largely ignored by the literature. We use a dualistic model based on Dixit (1970) and on Mas-Colell and Razin (1973) to obtain hypotheses to be tested in cross-region growth regressions. In particular, we wish to test whether a high initial allocation of labour in agriculture in fact generates -- in each sector as well as at the aggregate level -- the specific impact on productivity growth (and therefore on convergence) implied by the theory of the dual economy. We use the data-base Regio-Eu set up by CRENoS, with aggregate and sectoral data for 109 territorial units from 1980 to 1990. Our cross-section results are consistent with the major predictions of the dualistic model. While part of the influence exerted by dualistic mechanisms is not easily distinguishable from the one exerted by other mechanisms such as technology diffusion, still the former appears to be a significant component of the whole process of convergence. Ignoring such component could lead to misleading interpretations of the relative roles played by each of the forces behind the process, and to inexact assessments of what actions should be taken – if any – by the European regional policy to help the process become more pervasive.
|Date of creation:||1997|
|Date of revision:|
|Contact details of provider:|| Postal: Via S. Giorgio 12, I-09124 Cagliari|
Web page: http://www.crenos.unica.it/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Gouyette, Claudine & Neven, Damien J, 1994.
"Regional Convergence in the European Community,"
CEPR Discussion Papers
914, C.E.P.R. Discussion Papers.
- Damien NEVEN & Claudine GOUYETTE, 1993. "Regional Convergence in the European Comunity," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9311, Université de Lausanne, Faculté des HEC, DEEP.
- Sala-i-Martin, Xavier X., 1996.
"Regional cohesion: Evidence and theories of regional growth and convergence,"
European Economic Review,
Elsevier, vol. 40(6), pages 1325-1352, June.
- Sala-i-Martin, Xavier, 1994. "Regional Cohesion: Evidence and Theories of Regional Growth and Convergence," CEPR Discussion Papers 1075, C.E.P.R. Discussion Papers.
- Xavier Sala-i-Martin, 1994. "Regional cohesion: Evidence and theories of regional growth and convergence," Economics Working Papers 104, Department of Economics and Business, Universitat Pompeu Fabra.
- Sala-i-martin, X., 1995.
"The Classical Approach to Convergence Analysis,"
734, Yale - Economic Growth Center.
- Sala-i-Martin, Xavier, 1995. "The Classical Approach to Convergence Analysis," CEPR Discussion Papers 1254, C.E.P.R. Discussion Papers.
- Xavier Sala-i-Martin, 1995. "The classical approach to convergence analysis," Economics Working Papers 117, Department of Economics and Business, Universitat Pompeu Fabra.
- Fagerberg, Jan, 1995.
"Convergence or Divergence? The Impact of Technology on "Why Growth Rates Differ.","
Journal of Evolutionary Economics,
Springer, vol. 5(3), pages 269-84, September.
- Jan Fagerberg, 1995. "Convergence or Divergence - The Impact of Technology," Working Papers Archives 1995524, Centre for Technology, Innovation and Culture, University of Oslo.
- Dixit, Avinash K, 1970. "Growth Patterns in a Dual Economy," Oxford Economic Papers, Oxford University Press, vol. 22(2), pages 229-34, July.
- 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, 09.
- Mas-Colell, Andreu & Razin, Assaf, 1973. "A Model of Intersectoral Migration and Growth," Oxford Economic Papers, Oxford University Press, vol. 25(1), pages 72-79, March.
- Barro, R.J. & Sala-I-Martin, X., 1991.
"Convergence Across States and Regions,"
629, Yale - Economic Growth Center.
- Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-51, April.
- Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
- Bernard, Andrew B & Jones, Charles I, 1996. "Productivity and Convergence across U.S. States and Industries," Empirical Economics, Springer, vol. 21(1), pages 113-35.
- Raffaele Paci, 1997.
"More similar and less equal: Economic growth in the European regions,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(4), pages 609-634, December.
- R. Paci, 1996. "More similar and less equal. Economic growth in the European regions," Working Paper CRENoS 199609, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- R. Paci & F. Pigliaru, 1997.
"European regional growth: do sectors matter?,"
Working Paper CRENoS
199703, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Paci, Raffaele & Pigliaru, Francesco, 1997. "Structural change and convergence: an Italian regional perspective," Structural Change and Economic Dynamics, Elsevier, vol. 8(3), pages 297-318, August.
When requesting a correction, please mention this item's handle: RePEc:cns:cnscwp:199705. 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: (Antonello Pau)
If references are entirely missing, you can add them using this form.