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Relative Sources of European Regional Productivity Convergence: A Bootstrap Frontier Approach

Author

Summary, in English

Enflo K. and Hjertstrand P. Relative sources of European regional productivity convergence: a bootstrap frontier approach, Regional Studies. This paper addresses the issue of Western European regional productivity growth and convergence by means of data envelopment analysis (DEA), decomposing labour productivity into efficiency change, technical change and capital accumulation. The decomposition shows that most regions have fallen behind the production frontier in efficiency and that capital accumulation has had a diverging effect on the labour productivity distribution. Using bootstrapping methods, the paper also accounts for the inherent bias and the stochastic elements in the efficiency estimation. It is found that the relative ranking of the efficiency scores remains stable after the bias correction, even after controlling for spatially correlated measurement errors, and that the DEA successfully identifies the regions on the production frontier as significantly more efficient than other regions.

Publishing year

2009

Language

English

Pages

643-659

Publication/Series

Regional Studies

Volume

42

Issue

10

Document type

Journal article

Publisher

Taylor & Francis

Topic

  • Economic History
  • Economics

Keywords

  • Bootstrap
  • Data envelopment analysis (DEA)
  • Efficiency
  • Regional convergence

Status

Published

ISBN/ISSN/Other

  • ISSN: 1360-0591