Study reveals widening productivity gaps across European regions, impacting economic growth
The article examines how regional productivity differences in the European Union changed from 1975 to 2000. By analyzing data from 205 regions and 8 sectors, the researchers found that these disparities were influenced by differences in the types of industries in each region, as well as overall productivity gaps. They used a statistical method called Esteban's shift-share analysis to study these factors over time. The results show that both the types of industries in a region and the overall productivity levels play a role in regional productivity gaps, and that these factors are interconnected.