Convergence of productivity levels among the EU countries: Evidence from a panel of industries

Veysel Ulusoy, Erkan Yalcin

    Research output: Contribution to journalArticlepeer-review

    Abstract

    We investigate whether economic integration stimulates income convergence and whether changes in production, specialisation and trade patterns associated with the enlargement process foster economic growth and convergence among countries. We examine income convergence via endogenous growth model for countries in which the scale factor stemming from learning-by-doing is a prevailing feature. We illustrate a clear connection between externalities and trade among EU countries. Empirical evidence based on a panel of industries shows that learning from export and import related scale effect do significantly affect the convergence process. We find that there is a low speed of convergence across the EU manufacturing. This implies that the degree of cross-manufacturing productivity inequality disappears in the very long-run. This in turn implies that manufacturing sectors, which are predicted, to be more productive in the past, are the same sectors that are also productive today.

    Original languageEnglish
    Pages (from-to)98-114
    Number of pages17
    JournalAustralian Economic Papers
    Volume50
    Issue number2-3
    DOIs
    Publication statusPublished - Sep 2011

    Fingerprint Dive into the research topics of 'Convergence of productivity levels among the EU countries: Evidence from a panel of industries'. Together they form a unique fingerprint.

    Cite this