EconPapers    
Economics at your fingertips  
 

Tradability and productivity growth differentials across EU Member States

Klaus Friesenbichler () and Christian Glocker

Structural Change and Economic Dynamics, 2019, vol. 50, issue C, 1-13

Abstract: We apply the tradable-nontradable framework (T-NT) to evaluate the lack of convergence in labor productivity among EU Member States. Our results show that increases in overall productivity are primarily due to the tradable and not the nontradable sectors of production. The low productivity growth in peripheral EU countries before the crisis was accompanied by a sharp increase in the production of nontradables (i.e. nontradable goods and services) relative to other EU countries. We identify differences in the legal systems and the quality of public institutions, among others, as factors relevant for explaining the observed productivity growth differentials. Our findings have implications for the European Commission’s macroeconomic imbalance procedures since the T-NT approach allows identifying patterns of real divergence on a disaggregated level.

Keywords: Tradability; Labor productivity; Growth; Institutions; Structural change (search for similar items in EconPapers)
JEL-codes: E01 E02 E60 O43 O47 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0954349X18300262
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Tradability and Productivity Growth Differentials Across EU Member States (2018) Downloads
Working Paper: Tradability and productivity growth differentials across EU member states (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:50:y:2019:i:c:p:1-13

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-12-10
Handle: RePEc:eee:streco:v:50:y:2019:i:c:p:1-13