Abstract
The aim of this paper is to analyze how the heterogeneous structure of the European regions has affected their patterns of convergence or divergence. We analyse data collected by Eurostat, from a balanced panel of 191 regions and 55 economic branches over the period 2003–2015. In this way, we are able to describe and capture technological proximity across the regions and analyse how it has evolved over space and time. Limiting the analysis to the manufacturing activities, we are also able to measure the degree of economic complexity of the regional production systems and assess how this affects their patterns of growth.
Our findings suggest that spatial effects tend to push towards convergence, with the Eastern regions that started from relatively low levels of GDP per capita and experienced higher growth rates. Nevertheless, the different level of economic complexity tends to widen the gaps between territories: for example, the German regions, whose economic structures are more complex, have kept on widening the gap between themselves and the other European regions. The two different forces are also interconnected as the Eastern regions combine a relatively low level of GDP per capita with a significant level of economic complexity. During the period considered, the improvement in living standards has corresponded to the upgrade of their manufacturing production structures.
The current paper is an updated version of the working paper hosted on the University of Venice Ca’ Foscari working paper series, here is the webpage link: https://iris.unive.it/retrieve/handle/10278/3717761/173862/WP_DSE_buccellato_coro_15_19.pdf
The opinions and views expressed in this paper by the author do not reflect in any way the opinions and views of Confindustria as an institution.
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Notes
- 1.
To this purpose a mapping has been realized between the two different sector classifications used by Eurostat before and after 2007. Data are available over the full period for 11 regions out of the top 20 and for other 213 regions. Data have been reclassified in 55 economic branches.
- 2.
We have aggregated the manufacturing activities relating to the following sectors: chemical, pharmaceutical, electronic, electrical, machinery and motor vehicles.
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Buccellato, T., Corò, G. (2020). Relatedness, Economic Complexity and Convergence Across European Regions. In: Paganetto, L. (eds) Capitalism, Global Change and Sustainable Development. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-46143-0_10
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