TY - JOUR
T1 - Productivity Polarization and Sectoral Dynamics in European Regions
AU - Lavezzi, Andrea Mario
AU - Fiaschi, Davide
AU - Lavezzi, Andrea Mario
PY - 2007
Y1 - 2007
N2 - 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 beta-convergence 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.
AB - 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 beta-convergence 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.
KW - Conditional convergence
KW - Distribution dynamics
KW - Nonparametric methods
KW - Sectoral analysis
KW - Conditional convergence
KW - Distribution dynamics
KW - Nonparametric methods
KW - Sectoral analysis
UR - http://hdl.handle.net/10447/1509
M3 - Article
VL - 29
SP - 612
EP - 637
JO - Journal of Macroeconomics
JF - Journal of Macroeconomics
SN - 0164-0704
ER -