The role of structural change in European regional productivity growth

Eoin O’Leary and Don Webber
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Eoin O’Leary: University College Cork

Working Papers from Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol

Abstract: Recent literature suggests that inter-sectoral structural change has a negligible impact on aggregate productivity growth. Through the application of dynamic shift-share methods, this paper presents an empirical re-examination of this perspective using data for 181 European regions from 1980 to 2007. The results suggest that the effect of the inter-sectoral component is far from negligible and is substantially stronger for those regions towards the higher deciles of the distribution. Moreover, its effects appear to be particularly growth enhancing when the region is either ‘high and improving’ or ‘low and deteriorating.’ These results rehabilitate the importance of structural change for growth and convergence.

Keywords: Regional Productivity; Shift-Share; Structural Change; Growth; Convergence (search for similar items in EconPapers)
JEL-codes: O47 R11 (search for similar items in EconPapers)
Date: 2012-01-01
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http://www2.uwe.ac.uk/faculties/BBS/BUS/Research/economics2012/1201.pdf

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Journal Article: The Role of Structural Change in European Regional Productivity Growth (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:uwe:wpaper:20121201

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