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

Grigorios Emvalomatis

doi:10.1007/s00181-016-1161-x

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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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 language	English
Pages (from-to)	1171-1192
Number of pages	22
Journal	Empirical Economics
Volume	53
Issue number	3
Early online date	23 Sept 2016
DOIs	https://doi.org/10.1007/s00181-016-1161-x
Publication status	Published - Nov 2017

Keywords

Convergence
Multifactor productivity
EU
Bayesian model comparison
State-space model

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Final published version, 547 KBLicence: CC BY

Cite this

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

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Keywords

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