Regional economic development in Europe: the role of total factor productivity

Sjoerd Beugelsdijk, Mariko Klasing, Petros Milionis*

*Corresponding author for this work

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Abstract

Regional economic development in Europe: the role of total factor productivity. Regional Studies. This paper documents the fact that the large and persistent differences in economic development across subnational regions in European Union countries can largely be attributed to differences in total factor productivity (TFP). Applying the technique of development accounting, the paper decomposes differences in output per worker across 257 European Union regions into a component due to the local availability of production factors and a component due to TFP. As the analysis reveals, TFP differences are large even within countries, and are strongly related to economic geography and historical development paths. This suggests limited interregional diffusion of technology and of efficient production practices.

Original languageEnglish
Pages (from-to)461-476
Number of pages16
JournalRegional Studies
Volume52
Issue number4
DOIs
Publication statusPublished - 2018

Keywords

  • regional economic development
  • total factor productivity
  • development accounting
  • European regions
  • RESEARCH-AND-DEVELOPMENT
  • GROWTH
  • CONVERGENCE
  • GEOGRAPHY
  • COUNTRIES
  • SPILLOVERS
  • INNOVATION
  • AGGLOMERATION
  • TECHNOLOGY
  • INVESTMENT

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