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Spatial And Sectoral Productivity Convergence Between European Regions, 1975-2000

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  • Julie Le Gallo

    (IERSO IFReDE-GRES)

  • Sandy Dall'erba

    (REAL)

Abstract

This paper analyzes the evolution of labor productivity disparities among 145 European regions over 1975-2000 according to the concepts of ƒã- and ƒÒ-convergence and emphasizes the importance of including spatial effects and a disaggregated analysis at a sectoral level. We detect a significant -convergence only in aggregate labor productivity and in the services sectors among peripheral regions. We also show that omitting spatial effects leads to biased measures of -convergence. We then estimate a pooled -convergence model including spatial autocorrelation and sectoral differentiation. The results indicate that disparities in productivity levels between core and peripheral regions persist by vary by sector.

Suggested Citation

  • Julie Le Gallo & Sandy Dall'erba, 2005. "Spatial And Sectoral Productivity Convergence Between European Regions, 1975-2000," Urban/Regional 0503004, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpur:0503004
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    References listed on IDEAS

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    10. Nicola Pontarollo, 2016. "Sectoral Productivity, Convergence And Space Between European Regions," Journal of Smart Economic Growth, , vol. 1(1), pages 1-27, August.
    11. Cardenete, Manuel Alejandro & Delgado, M. Carmen, 2015. "A simulation of impact of withdrawal European funds on Andalusian economy using a dynamic CGE model: 2014–20," Economic Modelling, Elsevier, vol. 45(C), pages 83-92.
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    14. Mark Roberts & Mark Setterfield, 2010. "Endogenous Regional Growth: A Critical Survey," Chapters,in: Handbook of Alternative Theories of Economic Growth, chapter 21 Edward Elgar Publishing.
    15. Amjad Naveed & Nisar Ahmad, 2016. "Labour productivity convergence and structural changes: simultaneous analysis at country, regional and industry levels," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 5(1), pages 1-17, December.
    16. Nicola Pontarollo & Elisa Montresor & Francesco Pecci, 2012. "Sectoral productivity convergence between European regions: does space matter?," ERSA conference papers ersa12p559, European Regional Science Association.
    17. Julie Le Gallo & Yiannis Kamarianakis, 2011. "The Evolution of Regional Productivity Disparities in the European Union from 1975 to 2002: A Combination of Shift-Share and Spatial Econometrics," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 123-139.

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    Keywords

    convergence; spatial econometrics; labor productivity; sectoral approach;

    JEL classification:

    • 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
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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