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Explaining the Distribution of Manufacturing Productivity in the EU Regions

In: European Regional Growth

Author

Listed:
  • Bernard Fingleton

    (University of Cambridge)

  • Enrique López-Bazo

    (University of Barcelona)

Abstract

In this Chapter, simulations of manufacturing productivity levels across the EU provide detailed insights regarding possible long-run distributions under various alternative assumptions about the determinants of productivity growth. The explanation of manufacturing productivity growth by region is based on an econometric model embodying recent developments in urban economic theory and geographical economics, which includes both internal and external increasing returns and spatial externality (spillover) effects. The model implies market interdependence involving a competitive manufacturing sector and producer services under monopolistic competition. The assumption of technological externalities and the presence of cross-region spillovers in the model lead to a specification that is typical of recent approaches in spatial econometrics, which seeks to avoid bias by a specification involving spatial interdependence. The Chapter uses recent developments in the analysis of growth empirics, involving the application of the estimated density function and the stochastic kernel, in order to visualize the long-run stochastic distributions under various assumptions. We control for the effects of various ancillary factors assumed to influence the equilibrium distribution so as to isolate the impact of each individual factors of interest. The visualizations enabled by the stochastic kernel clearly identify the effect of the different model variables on the entire regional distribution of manufacturing productivity.

Suggested Citation

  • Bernard Fingleton & Enrique López-Bazo, 2003. "Explaining the Distribution of Manufacturing Productivity in the EU Regions," Advances in Spatial Science, in: Bernard Fingleton (ed.), European Regional Growth, chapter 13, pages 375-409, Springer.
    • Handle: RePEc:spr:adspcp:978-3-662-07136-6_14
    DOI: 10.1007/978-3-662-07136-6_14
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    Cited by:

    1. Bernard Fingleton & Simonetta Longhi, 2013. "The Effects Of Agglomeration On Wages: Evidence From The Micro-Level," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 443-463, August.
    2. Eckey, Hans-Friedrich & Türck, Matthias, 2007. "Convergence of EU-Regions. A Literature Report," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 10, pages 5-32.
    3. Julie Le Gallo & Coro Chasco, 2009. "Spatial analysis of urban growth in Spain, 1900–2001," Studies in Empirical Economics, in: Giuseppe Arbia & Badi H. Baltagi (ed.), Spatial Econometrics, pages 59-80, Springer.
    4. Maza, Adolfo & Villaverde, José, 2008. "The world per capita electricity consumption distribution: Signs of convergence?," Energy Policy, Elsevier, vol. 36(11), pages 4255-4261, November.
    5. Azomahou, Théophile T. & Diene, Mbaye, 2012. "Polarization patterns in economic development and innovation," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 421-436.
    6. Fousekis, Panos, 2009. "International Consumption Patterns for Proteins and Fats: Intra-distributional Mobility and the Role of Income Elasticity," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 10(1), pages 1-16.
    7. Roberto Ezcurra & Pedro Pascual & Manuel Rapún, 2007. "Spatial disparities in the European Union: an analysis of regional polarization," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(2), pages 401-429, June.
    8. Fousekis, Panos, 2007. "Convergence of Relative State-level Per Capita Incomes in the United States Revisited," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-10.
    9. Panos Fousekis, 2007. "Growth determinants, intra-distribution mobility, and convergence of state-level agricultural productivity in the USA," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 54(1), pages 129-147, March.
    10. Roberto Ezcurra & Pedro Pascual & Manuel Rapún, 2007. "The Spatial Distribution of Income Inequality in the European Union," Environment and Planning A, , vol. 39(4), pages 869-890, April.
    11. Azomahou, Theophile & Diene, Mbaye, 2012. "Income polarization and innovation: Evidence from African economies," MERIT Working Papers 2012-048, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Dong Guo & Sandy Dall’erba & Julie Le Gallo, 2013. "The Leading Role of Manufacturing in China’s Regional Economic Growth," International Regional Science Review, , vol. 36(2), pages 139-166, April.
    13. Roberto Ezcurra & Carlos Gil & Pedro Pascual & Manuel Rapun, 2005. "Regional inequality in the European Union: Does industry mix matter?," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 679-697.

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