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The Evolution of Regional Productivity Disparities in the European Union from 1975 to 2002: A Combination of Shift-Share and Spatial Econometrics

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  • Julie Le Gallo
  • Yiannis Kamarianakis

Abstract

Le Gallo J. and Kamarianakis Y. The evolution of regional productivity disparities in the European Union from 1975 to 2002: a combination of shift-share and spatial econometrics, Regional Studies. This paper evaluates the relative significance of the key factors that underlie regional productivity disparities in the European Union: industry mix and structural regional differences. Shift-share decomposition is performed and the outcomes are investigated with exploratory spatial analysis and space-time econometric models. Substantial changes in the spatial patterns of productivity and its determinants can be observed during the study period. Results indicate a decrease in geographical clustering for productivity and both regional and sectoral factors. Spatio-temporal dependencies are essential for correct model specification as their omission results in an overestimation of the effect of the industry mix. [image omitted] Le Gallo J. et Kamarianakis Y. L'evolution des ecarts de productivite regionaux dans l'Union europeenne de 1975 a 2002: la combinaison d'une analyse structurelle-geographique et de l'econometrie spatiale, Regional Studies. Cet article cherche a evaluer l'importance relative des facteurs cles qui etayent les ecarts de productivite regionaux dans l'Union europeenne: la structure industrielle et les differences structurelles regionales. On emploie une analyse structurelle-geographique et examine les resultats a partir d'une analyse exploratoire des donnees spatiales et des modeles econometriques spatio-temporels. Au cours de la periode etudiee, on note d'importantes modifications de la structure geographique de la productivite et de ses determinants. Les resultats laissent voir une diminution du regroupement geographique quant a la productivite et aux facteurs a la fois regionaux et sectoriels. Des dependances spatio-temporelles sont indispensables a la bonne specification des modeles parce que leur exclusion conduit a une surestimation de l'effet de la structure industrielle. Regions europeennes Ecarts de productivite Autocorrelation spatiale Regressions apparemment non liees Le Gallo J. und Kamarianakis Y. Die Entwicklung von Disparitaten bei der regionalen Produktivitat in der Europaischen Union zwischen 1975 und 2002: eine Kombination von Shift-Share- und raumlicher Okonometrie, Regional Studies. In diesem Beitrag untersuchen wir die relative Signifikanz der Schlusselfaktoren fur die Disparitaten hinsichtlich der regionalen Produktivitat in der Europaischen Union: Branchenmischung und strukturelle regionale Unterschiede. Die Ergebnisse einer Shift-Share-Dekomposition werden mit Hilfe einer exploratorischen Raumanalyse und okonometrischer Raum-Zeit-Modelle untersucht. Im untersuchten Zeitraum lassen sich erhebliche Veranderungen in den raumlichen Mustern der Produktivitat und ihrer Determinanten beobachten. Die Ergebnisse weisen hinsichtlich der Produktivitat sowie der regionalen und sektoralen Faktoren auf eine Abnahme der geografischen Clusterbildung hin. Zur richtigen Spezifizierung des Modells sind raumlich-zeitliche Abhangigkeiten wesentlich, da bei ihrer Auslassung die Auswirkung der Branchenmischung uberschatzt wird. Europaische Regionen Disparitaten bei der Produktivitat Raumliche Autokorrelation Scheinbar unverbundene Regressionen (SUR) Le Gallo J. y Kamarianakis Y. La evolucion de las desigualdades de productividad regional en la Union Europea de 1975 a 2002: una combinacion de econometricos shift-share y espaciales, Regional Studies. En este articulo valoramos la importancia relativa de los factores clave que subyacen en las desigualdades de productividad regional en la Union Europea: la combinacion industrial y las diferencias regional estructurales. Investigamos los resultados de una descomposicion mediante el control proporcional-diferencial (shift-share) aplicando un analisis espacial exploratorio y modelos econometricos en el espacio-tiempo. Durante el periodo del estudio pudimos observar cambios significativos en los modelos espaciales de productividad y sus determinantes. Los resultados indican una disminucion en la agrupacion geografica para la productividad y para los factores regionales y sectoriales. Las dependencias en el espacio-tiempo son fundamentales para una especificacion correcta del modelo puesto que al ignorarlas ocurre una sobrevaloracion del efecto de la combinacion industrial. Regiones europeas Desigualdades en la productividad Autocorrelacion espacial Regresiones aparentemente no relacionadas (SUR)

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  • 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.
    • Handle: RePEc:taf:regstd:v:45:y:2011:i:1:p:123-139
    DOI: 10.1080/00343400903234662
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    4. Frank van Oort & Stefan de Geus & Teodora Dogaru, 2015. "Related Variety and Regional Economic Growth in a Cross-Section of European Urban Regions," European Planning Studies, Taylor & Francis Journals, vol. 23(6), pages 1110-1127, June.
    5. Tirado, Daniel A. & Badia-Miró, Marc, 2012. "Economic integration and regional inequality in Iberia (1900-2000) : a geographical approach," IFCS - Working Papers in Economic History.WH wp12-03, Universidad Carlos III de Madrid. Instituto Figuerola.
    6. 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.
    7. Matthias Firgo & Oliver Fritz, 2017. "Does having the right visitor mix do the job? Applying an econometric shift-share model to regional tourism developments," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(3), pages 469-490, May.
    8. Mertens, Matthias & Mueller, Steffen, 2022. "The East-West German gap in revenue productivity:Just a tale of output prices?," Journal of Comparative Economics, Elsevier, vol. 50(3), pages 815-831.
    9. Valente J. Matlaba & Mark Holmes & Philip McCann & Jacques Poot, 2014. "Classic and Spatial Shift-Share Analysis of State-Level Employment Change in Brazil," Advances in Spatial Science, in: Karima Kourtit & Peter Nijkamp & Robert Stimson (ed.), Applied Regional Growth and Innovation Models, edition 127, chapter 0, pages 139-172, Springer.
    10. Jean‐François Ruault & Yves Schaeffer, 2020. "Scalable shift‐share analysis: Novel framework and application to France," Papers in Regional Science, Wiley Blackwell, vol. 99(6), pages 1667-1690, December.
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    13. Bruhn, Simon & Grebel, Thomas, 2023. "Allocative efficiency, plant dynamics and regional productivity: Evidence from Germany," Ilmenau Economics Discussion Papers 172, Ilmenau University of Technology, Institute of Economics.
    14. 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.
    15. Evert Meijers & Martijn Burger & Mark Thissen & Thomas Graaff & Frank Oort, 2016. "Competitive network positions in trade and structural economic growth: A geographically weighted regression analysis for European regions," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 159-180, March.
    16. Dina Krasnoselskaya & Venera Timiryanova, 2022. "Do polycentric patterns influence the economic performance of municipalities? Empirical evidence from Russia," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(5), pages 1201-1222, October.
    17. Qiang Li & Jason F. Kovacs & Geun Hee Choi, 2021. "High-technology employment growth in China: geographic disparities in economic structure and sectoral performance," Economic Change and Restructuring, Springer, vol. 54(4), pages 1025-1064, November.
    18. Fernando López & Jesús Mur & Ana Angulo, 2014. "Spatial model selection strategies in a SUR framework. The case of regional productivity in EU," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 197-220, August.
    19. Rafael Boix‐Domenech & Jesús Peiró‐Palomino & Pau Rausell‐Köster, 2021. "Creative industries and productivity in the European regions. Is there a Mediterranean effect?," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1546-1564, October.
    20. Giuseppe Arbia, 2011. "A Lustrum of SEA: Recent Research Trends Following the Creation of the Spatial Econometrics Association (2007--2011)," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 377-395, July.
    21. Boubacar, Inoussa, 2016. "Spatial determinants of U.S. FDI and exports in OECD countries," Economic Systems, Elsevier, vol. 40(1), pages 135-144.
    22. Paola Bertolini & Michele Lalla & Francesco Pagliacci, 2015. "School enrolment of first- and second-generation immigrant students in Italy: A geographical analysis," Papers in Regional Science, Wiley Blackwell, vol. 94(1), pages 141-159, March.
    23. Raisa Țăruș & Ștefan Dezsi & Andreea M. Crăciun & Florin Pop & Claudia E. Tudorache, 2022. "Urban Shrinking Cities in Romania and The Netherlands—A Possible Policy Framing," Sustainability, MDPI, vol. 14(10), pages 1-23, May.
    24. Pontarollo, Nicola & Serpieri, Carolina, 2020. "A composite policy tool to measure territorial resilience capacity," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    25. 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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