Edited by Bernard Fingleton
Chapter 8: A Non-parametric Analysis of Productivity, Efficiency and Technical Change in EU Regional Manufacturing, 1986–2002
8. A non-parametric analysis of productivity, eﬃciency and technical change in EU regional manufacturing, 1986–2002 Mark Roberts, John S.L. McCombie and Alvaro Angeriz 8.1 INTRODUCTION Studies of cross-regional productivity diﬀerences and their evolution over time have, with the twin emergence of better data sets and a rising tide of interest amongst economists in spatial issues, become increasingly popular over the last decade and a half.1 This is especially true for the European Union, where further impetus has, of course, been provided by the advent of Economic and Monetary Union (EMU). Despite this, however, relatively little, if anything, is known about whether cross-regional diﬀerences in productivity growth in the EU are attributable to spatial diﬀerences in the eﬃciency with which factors are employed or spatial disparities in the rate of technical change. Indeed, the theoretical framework typically used as the backdrop for empirical research in this area assumes that all regions are technically eﬃcient and that technology is a pure public good. That is to say, the framework typically used is an ‘old’ neoclassical growth framework that implicitly assumes that all regions are not only operating on their production functions, but that they share the same production function. This being the case, spatial diﬀerences in productivity are purely attributable to spatial diﬀerences in labour productivity emanating from diﬀerences in the capital intensity of production. Likewise, spatial diﬀerences in rates of productivity growth take the form of spatial diﬀerences in...
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