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Is the Convergence Party Over? Labour Productivity and the Technology Gap in E urope
Author(s) -
Filippetti Andrea,
Peyrache Antonio
Publication year - 2013
Publication title -
jcms: journal of common market studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.54
H-Index - 90
eISSN - 1468-5965
pISSN - 0021-9886
DOI - 10.1111/jcms.12066
Subject(s) - productivity , technology gap , convergence (economics) , labour economics , economics , inefficiency , cohesion (chemistry) , closing (real estate) , capital (architecture) , international trade , economic growth , market economy , geography , chemistry , organic chemistry , finance , archaeology
Closing the technology gap to reduce labour productivity disparities across E urope is crucial for the E uropean cohesion policy. This article explores the sources of labour productivity growth in E urope over the period 1993–2007 in light of the enlargement process. Labour productivity growth has been mostly driven by capital accumulation. New Member States have significantly reduced their inefficiency and their technology gap. Disparities in the levels of labour productivity are still substantial and, to a considerable extent, they can be attributed to technology gap differences. This raises concerns about the process of convergence in labour productivity in E urope and suggests further policies aimed at reducing the technology gap.