TFP Convergence Across European Regions: A Comparative Spatial Dynamics Analysis

Adriana Di Liberto and Stefano Usai

A chapter in Geography, Institutions and Regional Economic Performance, 2013, pp 39-58 from Springer

Abstract: Abstract This paper proposes a fixed-effect panel methodology to estimate Total Factor Productivity and investigate the spatial dimension of regional EU TFP from both a static and a dynamic perspective. The sample includes 199 regions in EU15 (plus Norway and Switzerland) between 1985 and 2006. First of all, we find the absence of an overall process of convergence, since TFP dispersion is virtually constant along time. Furthermore, exploratory spatial data techniques show that there are interesting interregional dynamic patterns. We find that polarization patterns in Europe have significantly changed along time. Overall, results suggest that only few TFP leaders are emerging and they are distancing themselves from the rest, while the cluster of low TFP regions is widening.

Keywords: TFP; Technology catching up; Panel data; Exploratory spatial data analysis (search for similar items in EconPapers)
Date: 2013
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Working Paper: TFP convergence across European regions: a comparative spatial dynamics analysis (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-642-33395-8_3

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DOI: 10.1007/978-3-642-33395-8_3

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