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Productivity convergence in the European regions, 1980-2003: a sectoral and spatial approach

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  • Jose Villaverde
  • Adolfo Maza

Abstract

This article analyses the evolution of the EU productivity between 1980 and 2003, both across regions and sectors. By making use of various techniques (cross-section, nonparametric and spatial approaches) it concludes that: (1) the regional and sectoral dispersion of productivity is quite high; (2) the gains experienced in aggregate productivity are due entirely to the sectors productivity growth effect; (3) there is a weak beta-convergence process at the aggregate and sectoral levels; (4) the accounting decomposition of the aggregate productivity convergence process reveals the sectoral productivity growth effect to be the only responsible factor for regional catching-up; (5) finally, there are clear signs of spatial dependence which, when properly addressed, increase the speed of convergence at the aggregate level.

Suggested Citation

  • Jose Villaverde & Adolfo Maza, 2008. "Productivity convergence in the European regions, 1980-2003: a sectoral and spatial approach," Applied Economics, Taylor & Francis Journals, vol. 40(10), pages 1299-1313.
    • Handle: RePEc:taf:applec:v:40:y:2008:i:10:p:1299-1313
    DOI: 10.1080/00036840600771361
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    1. Bart van Ark & Robert Inklaar & Robert H. McGuckin, 2003. "ICT and Productivity in Europe and the United States Where Do the Differences Come From?," CESifo Economic Studies, CESifo Group, vol. 49(3), pages 295-318.
    2. repec:dgr:rugccs:200311 is not listed on IDEAS
    3. Ark, Bart van & Inklaar, Robert & McGuckin, Robert H., 2003. "ICT and productivity in Europe and the United States," CCSO Working Papers 200311, University of Groningen, CCSO Centre for Economic Research.
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    Cited by:

    1. Claudio Di Berardino & Giuseppe Mauro & Davide Quaglione & Alessandro Sarra, 2017. "Structural change and the sustainability of regional convergence: Evidence from the Italian regions," Environment and Planning C, , vol. 35(2), pages 289-311, March.
    2. Aleberto Alesina & Guido Tabellini & Francesco Trebbi, 2017. "Is Europe an Optimal Political Area?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(1 (Spring), pages 169-234.
    3. ANDRADE, Carlos & PINHO, Carlos & PINHO, Maria de Fátima, 2010. "Exploring Regional Convergence: Evidence From 19 European Countries, 1991-2008," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 10(2).
    4. Adolfo Maza & José Villaverde & María Hierro, 2009. "Regional Productivity Distribution in the European Union: Which are the Influencing Factors?," European Planning Studies, Taylor & Francis Journals, vol. 17(1), pages 149-159, January.
    5. María Hierro & Adolfo Maza, 2010. "Per capita income convergence and internal migration in Spain: Are foreign‐born migrants playing an important role?," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 89-107, March.
    6. Scott W. Hegerty, 2016. "Regional Convergence and Growth Clusters in Central and Eastern Europe: An Examination of Sectoral-Level Data," Eastern European Business and Economics Journal, Eastern European Business and Economics Studies Centre, vol. 2(2), pages 95-110.
    7. Eoin O'Leary & Don J. Webber, 2015. "The Role of Structural Change in European Regional Productivity Growth," Regional Studies, Taylor & Francis Journals, vol. 49(9), pages 1548-1560, September.
    8. Shubin Yang & Sandra Lancheros & Chris Milner, 2021. "Technological Catch-up to the National and Regional Frontier: Firm-level Evidence for India," Journal of Development Studies, Taylor & Francis Journals, vol. 57(8), pages 1303-1320, August.
    9. Çınar Tuğrul, 2017. "Spatial Dimensions of Sectoral Labor Productivity Convergence in Turkey: A Spatial Panel Data Approach," Review of Middle East Economics and Finance, De Gruyter, vol. 13(1), pages 1-14, April.
    10. Garashchuk, Anna & Castillo, Fernando Isla & Rivera, Pablo Podadera, 2023. "Economic cohesion and development of the European Union's regions and member states - A methodological proposal to measure and identify the degree of regional economic cohesion," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    11. Roberta Colavecchio & Declan Curran & Michael Funke, 2009. "Drifting together or falling apart? The empirics of regional economic growth in post-unification Germany," Applied Economics, Taylor & Francis Journals, vol. 43(9), pages 1087-1098.
    12. Venera Timiryanova & Konstantin Grishin & Dina Krasnoselskaya, 2020. "Spatial Patterns of Production-Distribution-Consumption Cycle: The Specifics of Developing Russia," Economies, MDPI, vol. 8(4), pages 1-18, October.
    13. Ulrich Gunter & M. Graziano Ceddia & David Leonard & Bernhard Tröster, 2018. "Contribution of international ecotourism to comprehensive economic development and convergence in the Central American and Caribbean region," Applied Economics, Taylor & Francis Journals, vol. 50(33), pages 3614-3629, July.
    14. Devasmita JENA, 2018. "Economic integration and income convergence in the EU and the ASEAN," Journal of Economics Library, KSP Journals, vol. 5(1), pages 1-11, March.
    15. David Sondermann, 2014. "Productivity in the euro area: any evidence of convergence?," Empirical Economics, Springer, vol. 47(3), pages 999-1027, November.
    16. Up Lim & Donghyun Kim, 2015. "Toward Sustainable Economic Growth: A Spatial Panel Data Analysis of Regional Income Convergence in US BEA Economic Areas," Sustainability, MDPI, vol. 7(8), pages 1-17, July.
    17. Claudia Suárez‐Arbesú & Nicholas Apergis & Francisco J. Delgado, 2023. "Club convergence and factors of income inequality in the European Union," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 3654-3666, October.
    18. Prest, Brian C., 2018. "Explanations for the 2014 oil price decline: Supply or demand?," Energy Economics, Elsevier, vol. 74(C), pages 63-75.
    19. Alicia Gómez‐Tello & María‐José Murgui‐García & María‐Teresa Sanchis‐Llopis, 2022. "Au revoir Paris! Spanish regions closer to the EU average and further away from the leaders," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(5), pages 1133-1157, October.

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