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

Grigorios Emvalomatis (Lead / Corresponding author)

    Research output: Contribution to journalArticle

    2 Citations (Scopus)
    93 Downloads (Pure)

    Abstract

    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
    Volume53
    Issue number3
    Early online date23 Sep 2016
    DOIs
    Publication statusPublished - Nov 2017

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    Productivity
    Sector
    EU
    productivity
    evidence
    model comparison
    Model Comparison
    Currency
    EU member state
    State-space Model
    Bayesian Model
    Formal Model
    Viability
    currency
    Economics
    Evidence
    trend
    economics
    Model comparison
    Common currency

    Keywords

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

    Cite this

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    title = "Is Productivity Diverging in the EU? Evidence from 11 Member States",
    abstract = "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.",
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    author = "Grigorios Emvalomatis",
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    doi = "10.1007/s00181-016-1161-x",
    language = "English",
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    Is Productivity Diverging in the EU? Evidence from 11 Member States. / Emvalomatis, Grigorios (Lead / Corresponding author).

    In: Empirical Economics, Vol. 53, No. 3, 11.2017, p. 1171-1192.

    Research output: Contribution to journalArticle

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