Modelling regional productivity performance across Western Europe

Julian Ramajo and Geoffrey Hewings

Regional Studies, 2018, vol. 52, issue 10, 1372-1387

Abstract: This study investigates the potential role of variations in technical efficiency as a contributing factor in providing an explanation for convergence or divergence in Western Europe. To control for spatial dependence among regions, it uses a spatial stochastic frontier framework that integrates spatial econometric techniques with stochastic frontier panel-data models. The empirical analysis reveals there is a strong geographical pattern of regional efficiency, while the degree of average regional efficiency has increased steadily year by year. From a European regional policy perspective, we can conclude that differentiated development strategies seem more appropriate than homogeneous or best-practice investment approaches.

Date: 2018
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DOI: 10.1080/00343404.2017.1390219

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