TY - JOUR
T1 - Labour productivity convergence and structural changes
T2 - simultaneous analysis at country, regional and industry levels
AU - Naveed, Amjad
AU - Ahmad, Nisar
N1 - Funding Information:
We would like to thanks the Department of Border Regional Studies, University of Southern Denmark for providing financial support to buy Cambridge econometric dataset for the analysis.
Publisher Copyright:
© 2016, The Author(s).
PY - 2016/12/1
Y1 - 2016/12/1
N2 - Many structural changes have occurred in the European Union countries, for example, there have been changes in sectoral employment share, in the demand of goods due to technology, in trade patterns and in technology. These structural changes may affect the process of convergence. Most of the existing studies on convergence have ignored the role of structural change, which may have resulted in different conclusion. This study considers the role of structural change in testing labour productivity convergence and its speed at the country, region and industry levels simultaneously. The results show that conditional convergence exists at country, regional and industry levels. However, speed of convergence is different across different aggregation levels. Convergence speed at the regional levels is faster than at the country and industry levels. Furthermore, if we do not incorporate structural change, convergence speed may be over- or underestimated.
AB - Many structural changes have occurred in the European Union countries, for example, there have been changes in sectoral employment share, in the demand of goods due to technology, in trade patterns and in technology. These structural changes may affect the process of convergence. Most of the existing studies on convergence have ignored the role of structural change, which may have resulted in different conclusion. This study considers the role of structural change in testing labour productivity convergence and its speed at the country, region and industry levels simultaneously. The results show that conditional convergence exists at country, regional and industry levels. However, speed of convergence is different across different aggregation levels. Convergence speed at the regional levels is faster than at the country and industry levels. Furthermore, if we do not incorporate structural change, convergence speed may be over- or underestimated.
KW - Convergence
KW - Country
KW - Labour productivity
KW - Regional and industry
KW - Structural changes
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U2 - 10.1186/s40008-016-0050-y
DO - 10.1186/s40008-016-0050-y
M3 - Article
AN - SCOPUS:85014737080
SN - 2193-2409
VL - 5
JO - Journal of Economic Structures
JF - Journal of Economic Structures
IS - 1
M1 - 19
ER -