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Labour productivity convergence and structural changes: simultaneous analysis at country, regional and industry levels

Author

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  • Amjad Naveed

    (University of Southern Denmark)

  • Nisar Ahmad

    (Sultan Qaboos University)

Abstract

Many structural changes have occurred in the European Union countries, for example, there have been changes in sectoral employment share, in the demand of goods due to technology, in trade patterns and in technology. These structural changes may affect the process of convergence. Most of the existing studies on convergence have ignored the role of structural change, which may have resulted in different conclusion. This study considers the role of structural change in testing labour productivity convergence and its speed at the country, region and industry levels simultaneously. The results show that conditional convergence exists at country, regional and industry levels. However, speed of convergence is different across different aggregation levels. Convergence speed at the regional levels is faster than at the country and industry levels. Furthermore, if we do not incorporate structural change, convergence speed may be over- or underestimated.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:jecstr:v:5:y:2016:i:1:d:10.1186_s40008-016-0050-y
    DOI: 10.1186/s40008-016-0050-y
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    References listed on IDEAS

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    3. Bhattarai, Keshab & Qin, Weiguang, 2022. "Convergence in labor productivity across provinces and production sectors in China," The Journal of Economic Asymmetries, Elsevier, vol. 25(C).
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    6. Didit Welly UDJIANTO & Joko SUSANTO & PURWIYANTA, 2019. "Infrastructure, Employment And Income Convergence," Romanian Journal of Economics, Institute of National Economy, vol. 49(2(58)), pages 50-61, December.
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    More about this item

    Keywords

    Labour productivity; Convergence; Structural changes; Country; Regional and industry;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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