Total Factor Productivity, Efficiency, and Technological Change in the European Regions: A Nonparametric Approach

This paper examines the global trend of total factor productivity, efficiency, and technological change in the European Union regions over the period 1986–2004, using the Malmquist index computed by data envelopment analysis. The results reveal the important role played by technical efficiency in ex...

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Bibliographic Details
Published in:Environment and planning. A 2009-05, Vol.41 (5), p.1152-1170
Main Authors: Ezcurra, Roberto, Iraizoz, Belen, Pascual, Pedro
Format: Article
Language:English
Subjects:
Bgi / Prodig
Europe
General and multiregional studies
Indexing in process
Q1
The economics
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Summary:This paper examines the global trend of total factor productivity, efficiency, and technological change in the European Union regions over the period 1986–2004, using the Malmquist index computed by data envelopment analysis. The results reveal the important role played by technical efficiency in explaining total factor productivity growth in the European Union. For this reason, in a second stage, we investigate existing regional disparities in efficiency levels across the European regions, using a nonparametric methodology that allows us to study the dynamics of the entire cross-sectional distribution. Estimates show the presence of a process of convergence in efficiency levels over the sample period, despite a relatively low degree of intradistribution mobility. In order to complete these results, factors such as the geographical location of the various regions, country-specific characteristics, or the sectoral composition of economic activity were examined for their role in explaining the observed disparities.
ISSN:0308-518X
1472-3409
DOI:10.1068/a40362