Roberto Ezcurra

Spatial Disparities in Productivity and Industry Mix The Case of the European Regions

This paper applies non-parametric techniques to examine the evolution of the distribution of regional productivity in the European Union between 1977 and 1999. Likewise, we study the strength of the respective roles played by regional and sectoral factors in the convergence in productivity observed in the European context. To achieve this aim, we consider a new methodology involving a modification of conventional shift-share analysis and various theoretical results obtained in the literature on personal income distribution. Our findings suggest that regional inequality in productivity is closely linked to intrinsic differences between regions. Similarly, the analysis carried out reveals the major role played by the national component and spatial dimension in the explanation of regional disparities in product per worker in the European Union. In addition, our results support the relevance of one-sector growth models for analysing regional disparities in per-capita income.

Trade Openness and Spatial Inequality in Emerging Countries

Abstract Emerging world countries have experienced over the last two decades a significant change in their trade patterns. Bold trade reforms have been followed by rapid rises in international trade levels. However, despite these radical changes, we know remarkably little about how changes in trade patterns are affecting the evolution of regional inequality in the developing world. This paper addresses the link between trade openness and spatial inequality across 22 emerging countries over the period between 1990 and 2006. Our findings show that changes in international trade bring about a significant rise in within-country inequality across the developing world and that this impact is greatest in the poorest countries. This result is robust to the inclusion of a number of control variables, and to changes in the specification of the sample and in the measure used to quantify the level of regional disparities. Consequently, the increase in trade exposure across the emerging world, while possibly benefiting the countries involved in the process in aggregate terms, is generating winning and losing regions.