Modelling regional productivity performance across Western Europe

Julián Ramajo, Geoffrey J.D. Hewings

Research output: Contribution to journalArticlepeer-review

Abstract

This study investigates the potential role of variations in technical efficiency as a contributing factor in providing an explanation for convergence or divergence in Western Europe. To control for spatial dependence among regions, it uses a spatial stochastic frontier framework that integrates spatial econometric techniques with stochastic frontier panel-data models. The empirical analysis reveals there is a strong geographical pattern of regional efficiency, while the degree of average regional efficiency has increased steadily year by year. From a European regional policy perspective, we can conclude that differentiated development strategies seem more appropriate than homogeneous or best-practice investment approaches.

Original languageEnglish (US)
Pages (from-to)1372-1387
Number of pages16
JournalRegional Studies
Volume52
Issue number10
DOIs
StatePublished - Oct 3 2018

Keywords

  • European regions
  • frontier analysis
  • spatial Durbin model
  • spatial spillovers
  • stochastic production function
  • technical efficiency

ASJC Scopus subject areas

  • Environmental Science(all)
  • Social Sciences(all)

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