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The role of structural change in European regional productivity growth

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  • Eoin O’Leary

    (University College Cork)

  • Don J. Webber

    (University of the West of England, Bristol)

Abstract

Recent literature suggests that inter-sectoral structural change has a negligible impact on aggregate productivity growth. Through the application of dynamic shift-share methods, this paper presents an empirical re-examination of this perspective using data for 181 European regions from 1980 to 2007. The results suggest that the effect of the inter-sectoral component is far from negligible and is substantially stronger for those regions towards the higher deciles of the distribution. Moreover, its effects appear to be particularly growth enhancing when the region is either ‘high and improving’ or ‘low and deteriorating.’ These results rehabilitate the importance of structural change for growth and convergence.

Suggested Citation

  • Eoin O’Leary & Don J. Webber, 2012. "The role of structural change in European regional productivity growth," Working Papers 20121201, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    • Handle: RePEc:uwe:wpaper:20121201
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    Cited by:

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    2. Thomas Brenner & Franziska Pudelko, 2019. "The effects of public research and subsidies on regional structural strength," Journal of Evolutionary Economics, Springer, vol. 29(5), pages 1433-1458, November.
    3. O'Connor, Sean & Doyle, Eleanor & Doran, Justin, 2018. "Diversity, employment growth and spatial spillovers amongst Irish regions," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 260-267.
    4. Elías Melchor-Ferrer, 2020. "Determinants of labour productivity growth in Spanish and Portuguese regions: a spatial shift-share approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 45-65, August.
    5. Gómez Tello, Alicia & Murgui García, Mª Jesús & Sanchís Llopis, M. Teresa, 2019. "Exploring the recent upsurge of regional inequality in Europe," IFCS - Working Papers in Economic History.WH 28775, Universidad Carlos III de Madrid. Instituto Figuerola.
    6. Cutrini, Eleonora, 2019. "Economic integration, structural change, and uneven development in the European Union," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 102-113.
    7. Magdalena Cyrek & Barbara Fura, 2019. "Employment for Sustainable Development: Sectoral Efficiencies in EU Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 277-318, May.
    8. Mihnenoka Aleksandra & Senfelde Maija, 2017. "the impact of national economy structural transformation on regional employment and income: the case of Latvia," South East European Journal of Economics and Business, Sciendo, vol. 12(2), pages 47-60, December.
    9. Alicia Gómez‐Tello & María‐José Murgui‐García & María‐Teresa Sanchis‐Llopis, 2022. "Au revoir Paris! Spanish regions closer to the EU average and further away from the leaders," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(5), pages 1133-1157, October.

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    More about this item

    Keywords

    Regional Productivity; Shift-Share; Structural Change; Growth; Convergence;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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