Is Productivity Diverging in the EU? Evidence from 11 Member States

Grigorios Emvalomatis (Lead / Corresponding author)

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    3 Citations (Scopus)
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    An argument that received a lot of attention in the political and economic discussion surrounding the recent crisis in the EU is that diverging trends in productivity across member countries will undermine the viability of the common currency. This article examines the issue of convergence in multifactor productivity using sector-level data from 11 EU Member States. A state-space model is developed and formal Bayesian model comparisons are performed to infer whether productivity is diverging, both at the aggregate level and at a sector-by-sector basis. The data point towards diverging productivity at the aggregate level, but suggest the opposite for many individual sectors.
    Original languageEnglish
    Pages (from-to)1171-1192
    Number of pages22
    JournalEmpirical Economics
    Issue number3
    Early online date23 Sept 2016
    Publication statusPublished - Nov 2017


    • Convergence
    • Multifactor productivity
    • EU
    • Bayesian model comparison
    • State-space model


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