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Explaining the distribution of manufacturing productivity in the EU regions

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  • Enrique Lopez-Bazo

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  • Bernard Fingleton

    ()

Abstract

Regional inequalities in product per capita and labour productivity in the EU are large and persistent. Building on a model in which aggregate increasing returns is the result of the increase in the number of varieties of composite services, under competitive manufactures, we derive a simple and empirically tractable reduced form linking manufacturing productivity growth to the growth of manufacturing output. This specification is used to simulate the equilibrium distribution of labour productivity in the EU regions, that is compared with "virtual" distributions obtained by equalizing, for instance, the amount of returns to scale and the stock of human capital across regions. This way, the impact of some growth determinants on the whole EU regional equilibrium distribution can be assessed.

Suggested Citation

  • Enrique Lopez-Bazo & Bernard Fingleton, 2003. "Explaining the distribution of manufacturing productivity in the EU regions," ERSA conference papers ersa03p197, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa03p197
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    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa03/cdrom/papers/197.pdf
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    References listed on IDEAS

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    1. Beath,John & Katsoulacos,Yannis, 1991. "The Economic Theory of Product Differentiation," Cambridge Books, Cambridge University Press, number 9780521335263, December.
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    6. Alessandra Chirco & Luca Lambertini & Fabio Zagonari, 2003. "How demand affects optimal prices and product differentiation," Economics of Governance, Springer, pages 555-568.
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    8. repec:kap:jeczfn:v:82:y:2003:i:4:p:555-568 is not listed on IDEAS
    9. Caplin, Andrew S & Nalebuff, Barry J, 1986. "Multi-dimensional Product Differentiation and Price Competition," Oxford Economic Papers, Oxford University Press, vol. 38(0), pages 129-145, Suppl. No.
    10. Tabuchi, Takatoshi & Thisse, Jacques-Francois, 1995. "Asymmetric equilibria in spatial competition," International Journal of Industrial Organization, Elsevier, vol. 13(2), pages 213-227.
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    Citations

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    Cited by:

    1. Bernard Fingleton & Simonetta Longhi, 2013. "The Effects Of Agglomeration On Wages: Evidence From The Micro-Level," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 443-463, August.
    2. Azomahou, Théophile T. & Diene, Mbaye, 2012. "Polarization patterns in economic development and innovation," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 421-436.
    3. Roberto Ezcurra & Pedro Pascual & Manuel Rapún, 2007. "The spatial distribution of income inequality in the European Union," Environment and Planning A, Pion Ltd, London, vol. 39(4), pages 869-890, April.
    4. Panos Fousekis, 2007. "Growth determinants, intra-distribution mobility, and convergence of state-level agricultural productivity in the USA," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), pages 129-147.
    5. Eckey, Hans-Friedrich & Türck, Matthias, 2007. "Convergence of EU-Regions. A Literature Report," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 10, pages 5-32.
    6. Fousekis, Panos, 2009. "International Consumption Patterns for Proteins and Fats: Intra-distributional Mobility and the Role of Income Elasticity," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 10(1), January.
    7. Azomahou, Theophile & Diene, Mbaye, 2012. "Income polarization and innovation: Evidence from African economies," MERIT Working Papers 048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Roberto Ezcurra & Pedro Pascual & Manuel Rapún, 2007. "Spatial disparities in the European Union: an analysis of regional polarization," The Annals of Regional Science, Springer;Western Regional Science Association, pages 401-429.
    9. Julie Le Gallo & Coro Chasco-Yrigoyen, 2006. "Spatial Analysis of Urban Growth in Spain (1900-2001)," ERSA conference papers ersa06p878, European Regional Science Association.
    10. Maza, Adolfo & Villaverde, José, 2008. "The world per capita electricity consumption distribution: Signs of convergence?," Energy Policy, Elsevier, vol. 36(11), pages 4255-4261, November.
    11. Julie Gallo & Coro Chasco, 2008. "Spatial analysis of urban growth in Spain, 1900–2001," Empirical Economics, Springer, pages 59-80.
    12. Julie Gallo & Coro Chasco, 2008. "Spatial analysis of urban growth in Spain, 1900–2001," Empirical Economics, Springer, pages 59-80.
    13. Fousekis, Panos, 2007. "Convergence of Relative State-level Per Capita Incomes in the United States Revisited," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2).
    14. Roberto Ezcurra & Carlos Gil & Pedro Pascual & Manuel Rapun, 2005. "Regional inequality in the European Union: Does industry mix matter?," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 679-697.

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