6533b85afe1ef96bd12b98cf

RESEARCH PRODUCT

Productivity Polarization and Sectoral Dynamics in European Regions

Davide FiaschiDavide FiaschiAndrea Mario LavezziAndrea Mario Lavezzi

subject

Economics and EconometricsDistribution dynamicbusiness.industryConditional convergencePolarization (politics)Distribution (economics)Aggregate productivitySectoral analysisNonparametric methodSpecialization (functional)EconomicsEconometricsSectoral analysisConditional convergenceDistribution dynamics; Conditional convergence; Nonparametric methods; Sectoral analysisbusinessProductivity

description

Abstract We show that the distribution dynamics of productivity in European regions displays polarization with a nonlinear growth path. We investigate the factors explaining this behavior focusing in particular on sectoral composition. The β -convegence analysis reveals that initial shares of Manufacturing and Other Market Services have a nonlinear impact on growth, while spatial effects are not statistically significant. By decomposing the dynamics of aggregate productivity in terms of sectoral dynamics, we show that productivity in Manufacturing, Non Market Services, and Other Market Services does not converge, for the complex interaction of technological spillovers and specialization effects.

yearjournalcountryeditionlanguage
2007-09-01
10.1016/j.jmacro.2007.03.003http://hdl.handle.net/11568/109234