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Labour Productivity Polarization Across Western European Regions: Threshold Effects Versus Neighbourhood Effects

Roberto Basile ()

Chapter 4 in The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, 2010, pp 75-97 from AIEL - Associazione Italiana Economisti del Lavoro

Abstract: The regional distribution of labour productivity in Western Europe is characterised by a Core-Periphery spatial pattern: high (low) productivity regions are in a proximate relationship with other high (low) productivity regions. Over the period 1980 to 2003, intra-distribution dynamics has generated long-run multiple equilibria with the formation of two clubs of convergence. The observed dynamics can only marginally be explained by nonlinear (threshold) effects in the accumulation of physical capital. In contrast, the joint effect of spatial dependence and nonlinearities in growth behaviour play a key role in determining multiple equilibria and reinforcing polarization of labour productivity.

Keywords: distribution dynamics; regional convergence; semiparametric additive models; spatial dependence; Europe. (search for similar items in EconPapers)
JEL-codes: C14 C21 R11 R12 (search for similar items in EconPapers)
Date: 2010
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