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

Julie Le Gallo () and Sandy Dall'erba ()

Papers in Regional Science, 2008, vol. 87, issue 4, pages 505-525

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 "&sgr;"-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 "&sgr;"-convergence. We then estimate a pooled "&bgr;"-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. Copyright (c) 2008 the author(s). Journal compilation (c) 2008 RSAI.

Date: 2008

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Related works:
Working Paper: SPATIAL AND SECTORAL PRODUCTIVITY CONVERGENCE BETWEEN EUROPEAN REGIONS, 1975-2000 (2005)
Working Paper: SPATIAL AND SECTORAL PRODUCTIVITY CONVERGENCE BETWEEN EUROPEAN REGIONS, 1975-2000 (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:bla:presci:v:87:y:2008:i:4:p:505-525

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