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Relative Sources of European Regional Productivity Convergence: A Bootstrap Frontier Approach

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  • Kerstin Enflo
  • Per Hjertstrand

Abstract

Enflo K. and Hjertstrand P. Relative sources of European regional productivity convergence: a bootstrap frontier approach, Regional Studies. This paper addresses the issue of Western European regional productivity growth and convergence by means of data envelopment analysis (DEA), decomposing labour productivity into efficiency change, technical change and capital accumulation. The decomposition shows that most regions have fallen behind the production frontier in efficiency and that capital accumulation has had a diverging effect on the labour productivity distribution. Using bootstrapping methods, the paper also accounts for the inherent bias and the stochastic elements in the efficiency estimation. It is found that the relative ranking of the efficiency scores remains stable after the bias correction, even after controlling for spatially correlated measurement errors, and that the DEA successfully identifies the regions on the production frontier as significantly more efficient than other regions. [image omitted] Enflo K. et Hjertstrand P. Les sources relatives de convergence de la productivite regionale europeenne: une methode 'bootstrap', Regional Studies. A partir de la DEA (data envelopment analysis), cet article cherche a aborder la question de la croissance et de la convergence de la productivite regionale de l'Europe de l'Ouest, en decomposant la productivite du travail en le changement d'efficience, la mutation technique et l'accumulation de capital. La decomposition montre que la plupart des regions se sont laissees distancer par la frontiere de production en termes de l'efficience et que l'accumulation de capital a eu un effet divergent sur la distribution de la productivite du travail. En employant des methodes 'bootstrap', cet article cherche aussi a expliquer le biais inherent et les elements stochastiques dans l'estimation de l'efficience. Il s'avere que le classement relatif des scores d'efficience reste stable une fois corrige du biais, meme apres avoir controle les erreurs de mesure qui sont en correlation sur le plan geographique, et que la DEA identifie avec succes les regions a la frontiere de production comme etant nettement plus efficientes que ne le sont les autres regions. Boostrap Data envelopment analysis (DEA) Efficience Convergence regionale Enflo K. und Hjertstrand P. Relative Quellen der regionalen Produktivitatskonvergenz in Europa: ein Bootstrap-Frontieransatz, Regional Studies. In diesem Beitrag untersuchen wir das Thema des Wachstums und der Konvergenz der regionalen Produktivitat in Westeuropa mit Hilfe einer Data-Envelopment-Analyse (DEA), wobei die Arbeitsproduktivitat in Effizienzanderung, technische Anderung und Kapitalakkumulation aufgegliedert wird. Aus der Aufgliederung geht hervor, dass die meisten Regionen hinsichtlich der Effizienz hinter die Produktionsfrontier gefallen sind und dass sich die Kapitalakkumulation divergierend auf die Verteilung der Arbeitsproduktivitat ausgewirkt hat. Mit Hilfe von Bootstrapping-Methoden werden in diesem Beitrag auch die inharenten Verzerrungen und stochastischen Elemente in der Effizienzschatzung berucksichtigt. Die Ergebnisse zeigen, dass die relative Einstufung der Effizienzwerte nach einer Korrektur der Verzerrung stabil bleibt, selbst wenn auf raumlich korrelierte Messfehler kontrolliert wird, und dass die Regionen an der Produktionsfrontier durch die DEA erfolgreich als signifikant effizienter als andere Regionen identifiziert werden. Bootstrap Data-Envelopment-Analyse (DEA) Effizienz Regionale Konvergenz Enflo K. y Hjertstrand P. Fuentes relativas de la convergencia de productividad regional en Europa: un enfoque de frontera Bootstrap, Regional Studies. En este articulo analizamos la cuestion del crecimiento y la convergencia de productividad regional en Europa occidental segun el metodo de Analisis Envolvente de Datos (AED), descomponiendo la productividad laboral en un cambio de eficacia, el cambio tecnico y la acumulacion de capital. Esta descomposicion demuestra que la mayoria de regiones se quedan por detras de la frontera de produccion en cuanto a la eficacia y que la acumulacion de capital ha tenido un efecto de divergencia en la distribucion de la productividad laboral. Usando metodos de bootstrap, en este articulo explicamos tambien el sesgo inherente y los elementos estocasticos en el calculo de la eficacia. Observamos que una clasificacion relativa de las puntuaciones de eficacia sigue estable despues de corregir los valores de sesgo incluso despues de comprobar si existen errores de medicion correlacionados espacialmente y que el metodo de AED identifica con exito las regiones sobre la frontera de la produccion como significativamente mas eficaces que otras regiones. Bootstrap Analisis Envolvente de Datos (AED) Eficacia Convergencia regional

Suggested Citation

  • Kerstin Enflo & Per Hjertstrand, 2009. "Relative Sources of European Regional Productivity Convergence: A Bootstrap Frontier Approach," Regional Studies, Taylor & Francis Journals, vol. 43(5), pages 643-659.
    • Handle: RePEc:taf:regstd:v:43:y:2009:i:5:p:643-659
    DOI: 10.1080/00343400701874198
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    More about this item

    Keywords

    Bootstrap; Data envelopment analysis (DEA); Efficiency; Regional convergence;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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