Relative sources of European regional productivity convergence: A bootstrap frontier approach
We address the issue of Western European regional productivity growth and convergence by means of Data Envelopment Analysis (DEA), decomposing labor 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 labor productivity distribution. We also account for the inherent bias and the stochastic elements in the efficiency estimation using bootstrapping methods. We find that the relative ranking of the bias-corrected efficiency scores remains stable after the bias correction and that the DEA successfully identifies the regions on the production frontier as significantly more efficient than other regions.
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Paper provided by Lund University, Department of Economics in its series Working Papers with number
2006:17.
| Length: | 22 pages |
| Date of creation: | 14 Aug 2006 |
| Publication status: | Published as Enflo, Kerstin and Per Hjertstrand, 'Relative sources of European regional productivity convergence: A bootstrap frontier approach' in Regional Studies, 2009, pages 643-659. |
| Handle: | RePEc:hhs:lunewp:2006_017 |
| Contact details of provider: | Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden Phone: +46 +46 222 0000 Fax: +46 +46 2224613 Web page: http://www.nek.lu.se/en More information through EDIRC
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References listed on IDEAS
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