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

  • Julie Le Gallo


  • Sandy Dall'erba


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.

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Paper provided by EconWPA in its series Urban/Regional with number 0503004.

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Length: 40 pages
Date of creation: 16 Mar 2005
Date of revision:
Handle: RePEc:wpa:wuwpur:0503004
Note: Type of Document - pdf; pages: 40
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