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Spatial and sectoral productivity convergence between European regions, 1975-2000

Author

Listed:
  • Julie Le Gallo

    (CRESE - Centre de REcherches sur les Stratégies Economiques (UR 3190) - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE])

  • Sandy Dall'Erba

    (School of Geography and Development - University of Arizona)

Abstract

This paper introduces the appropriate econometric methodology and statistical tests to evaluate the spatial and sectoral stability of the labour productivity convergence process of 145 European regions over 1975–2000. Our results display significant σ‐convergence only in aggregate labour productivity and in the services sectors among peripheral regions. We also show that omitting spatial effects leads to biased measures of σ‐convergence. We then estimate a pooled β‐convergence model including spatial autocorrelation and sectoral differentiation. Spatial and sectoral stability tests reveal which sectors display a convergence process and in which regime they are located. Resumen Este artículo presenta los test estadísticos y la metodología econométrica apropiados para evaluar la estabilidad espacial y sectorial del proceso de convergencia de la productividad laboral de 145 regiones europeas del 1975–2000. Nuestros resultados muestran una sigma‐convergencia significativa solamente en la productividad laboral agregada y en el sector servicios entre regiones periféricas. También mostramos que la omisión de efectos espaciales resulta en medidas sesgadas de la sigma‐convergencia. A continuación estimamos un modelo de beta‐convergencia combinada que incluye autocorrelación espacial y diferenciación sectorial. Los test de estabilidad espacial y sectorial revelan los sectores que muestran un proceso de convergencia y en qué régimen se hallan ubicados.
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Suggested Citation

  • Julie Le Gallo & Sandy Dall'Erba, 2008. "Spatial and sectoral productivity convergence between European regions, 1975-2000," Post-Print hal-00485038, HAL.
    • Handle: RePEc:hal:journl:hal-00485038
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    JEL classification:

    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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