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The evolution of regional productivity disparities in the European Union, 1975-2000

Author

Listed:
  • Yiannis KAMARIANAKIS (IACM and University of Crete)
  • Julie Le GALLO (GRES- IFReDE-IERSO)

Abstract

The aim of this paper is to assess the evolution of regional productivity disparities in the European Union. Using a sample of 205 regions and 8 sectors on the 1975-2000 period, we use Esteban’s (2000) shift-share analysis to investigate the extent to which the existing interregional inequalities in productivity can be attributed to differences in sectoral composition between regions and/or to uniform productivity gaps across sectors. After a specification search on the bivariate functional forms that relate productivity differentials to their shift-share decomposition, the difference between regional and EU average productivity is regressed on the three shift-share components: industry-mix, differential and allocative (i.e. the covariance between the first two components). In that purpose, spatial seemingly unrelated (SUR) regressions are carried out to study the evolution of the impact of the components on the productivity gap over time, while allowing for intertemporal covariance. Moreover, spatial autocorrelation is also included in the SUR regressions, and its evolution over the period is analyzed. Results indicate that both spatio-temporal dependencies are essential in model specification.

Suggested Citation

  • Yiannis KAMARIANAKIS (IACM and University of Crete) & Julie Le GALLO (GRES- IFReDE-IERSO), 2003. "The evolution of regional productivity disparities in the European Union, 1975-2000," Cahiers du GRES (2002-2009) 2003-15, Groupement de Recherches Economiques et Sociales.
  • Handle: RePEc:grs:wpegrs:2003-15
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    Cited by:

    1. Karsten Rusche, 2010. "Quality of life in the regions: an exploratory spatial data analysis for West German labor markets," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(1), pages 1-22, February.
    2. Cristiano Perugini & Marcello Signorelli, 2005. "Employment Differences, Convergences and Similarities in Italian Provinces," Quaderni del Dipartimento di Economia, Finanza e Statistica 07/2005, Università di Perugia, Dipartimento Economia.
    3. IORDAN Marioara & GRIGORESCU Adriana & CHILIAN Mihaela-Nona, 2013. "Sub-Regional Disparities In Romania - The Case Of The Centru Region," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 65(5), pages 102-117.
    4. Anastasiya Penska, 2015. "Determinants of Corruption in Ukrainian Regions: Spatial Analysis," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 42.
    5. Alessandro STERLACCHINI & Francesco VENTURINI, 2006. "Is Europe becoming a knowledge-driven economy? Evidence from EU developed regions," Working Papers 253, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    6. Cristiano Perugini, 2008. "Employment and Unemployment in the Italian Provinces," Quaderni del Dipartimento di Economia, Finanza e Statistica 49/2008, Università di Perugia, Dipartimento Economia.
    7. Mihaela-Nona Chilian, 2011. "Evolution of Regional Disparities in Romania – A Shift-share Analysis," ERSA conference papers ersa11p827, European Regional Science Association.
    8. Batóg Jacek & Batóg Barbara, 2007. "Productivity Changes in the European Union: Structural and Competitive Aspects," Folia Oeconomica Stetinensia, De Gruyter Open, vol. 6(1), pages 63-74, January.
    9. Chilian, Mihaela Nona, 2012. "Evolution of Regional and Sub-Regional Disparities in Romania – A Sectoral Shift-Share Analysis," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 187-204, March.
    10. Antonio Affuso & Roberta Capello & Ugo Fratesi, 2011. "Globalization and Competitive Strategies in European Vulnerable Regions," Regional Studies, Taylor & Francis Journals, vol. 45(5), pages 657-675.
    11. Cristiano Perugini & Marcello Signorelli, 2007. "Labour Market Performance Differentials and Dynamics in EU-15 Countries and Regions," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(2), pages 209-262, September.

    More about this item

    Keywords

    European regions; productivity disparities; spatial autocorrelation; SUR;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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