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Spatial disparities in productivity and industry mix: The case of the European regions

  • Juan Miguel Benito

    ()

  • Roberto Ezcurra

    ()

This paper applies nonparametric techniques in order to examine the evolution of the entire distribution of regional productivity in the European Union between 1977 and 1999. Likewise, we study the strength of the respective roles played by regional and sectoral factors in the convergence in productivity observed in the European context. To achieve this aim, we consider a new methodology involving a modification of conventional shift-share analysis and various results reported in the literature on personal income distribution. Our results suggest that regional inequality in productivity in the European Union is closely linked to intrinsic differences between regions. Likewise, the analyses performed reveal the major role played by the national component and the spatial dimension in the explanation of regional disparities in the product per worker in the European Union. In addition, our findings support the relevance of one-sector growth models for analysing regional disparities in per capita income.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p102.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p102
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  1. Fingleton, B & McCombie, J S L, 1998. "Increasing Returns and Economic Growth: Some Evidence for Manufacturing from the European Union Regions," Oxford Economic Papers, Oxford University Press, vol. 50(1), pages 89-105, January.
  2. R. Paci & F. Pigliaru, 2001. "Technological Diffusion, Spatial Spillovers And Regional Convergence In Europe," Working Paper CRENoS 200101, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  3. 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.
  4. 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.
  5. Ana Lamo, 2000. "On convergence empirics: same evidence for Spanish regions," Investigaciones Economicas, Fundación SEPI, vol. 24(3), pages 681-707, September.
  6. Shorrocks, Anthony F, 1983. "The Impact of Income Components on the Distribution of Family Incomes," The Quarterly Journal of Economics, MIT Press, vol. 98(2), pages 311-26, May.
  7. Danny Quah, 1992. "Empirical cross-section dynamics in economic growth," Discussion Paper / Institute for Empirical Macroeconomics 75, Federal Reserve Bank of Minneapolis.
  8. Esteban, J., 2000. "Regional convergence in Europe and the industry mix: a shift-share analysis," Regional Science and Urban Economics, Elsevier, vol. 30(3), pages 353-364, May.
  9. Lynn E. Browne, 1989. "Shifting regional fortunes: the wheel turns," New England Economic Review, Federal Reserve Bank of Boston, issue May, pages 27-40.
  10. Raffaele Paci & Francesco Pigliaru, 1999. "European regional growth: do sectors matter?," Chapters, in: Economic Growth and Change, chapter 8 Edward Elgar.
  11. S. Lodde, 1997. "Human Capital and Growth in the European Regions. Does Allocation Matter?," Working Paper CRENoS 199706, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  12. Raffaele Paci, 1997. "More similar and less equal: Economic growth in the European regions," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(4), pages 609-634, December.
  13. 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.
  14. Quah, Danny T., 1996. "Regional convergence clusters across Europe," European Economic Review, Elsevier, vol. 40(3-5), pages 951-958, April.
  15. Quah, Danny, 1996. "Regional Convergence Clusters Across Europe," CEPR Discussion Papers 1286, C.E.P.R. Discussion Papers.
  16. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
  17. Gerald A. Carlino, 1992. "Are regional per capita earnings diverging?," Business Review, Federal Reserve Bank of Philadelphia, issue Mar, pages 3-12.
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