Study reveals persistent productivity gaps between core and peripheral European regions
The article looks at how labor productivity changed in European regions from 1975 to 2000. They found that productivity improved overall and in service sectors, but not in other sectors. Poor regions shifted resources from agriculture to more productive sectors. When spatial effects were considered, the analysis showed a bias in the results. Inequality in productivity levels between core and peripheral regions still exists, and the speed of convergence varies by sector.