Regional Productivity Convergence in Advanced and Emerging European Economies (2016:12epa)

Regional Productivity Convergence in Advanced and Emerging European Economies (2016:12epa)

Finding ways to boost Europe’s economic growth in today’s post-crisis world is more important than ever. In this European Policy Analysis, the authors investigate which factors drive productivity across Europe’s regions. While regions in ‘old’ Europe mainly rely on internal sources such as human capital quality, research and development, regions in the ‘new’ EU are largely driven by the convergence effect arising from the productivity gap. If the size of the productivity gap is too large, however, regions are at risk of permanent underdevelopment. Convergence should therefore be replaced by the establishment of more sophisticated lines of business and an increase in product and service variety.

The publication is in English and is part of SIEPS´ research project EU and EMU after the economic crisis.

Kadri Männasoo is a Professor at Tallinn University of Technology, Department of Finance and Economics. Heili Hein is a graduate student in the Berlin School of Economics and Law. Raul Ruubel is a PhD candidate at Tallinn University of Technology, Department of Finance and Economics.