ABSTRACT This study investigates the potential role of variations in technical efficiency as a contributing factor in providing an explanation for convergence or divergence in Western Europe. To control for… Click to show full abstract
ABSTRACT This study investigates the potential role of variations in technical efficiency as a contributing factor in providing an explanation for convergence or divergence in Western Europe. To control for spatial dependence among regions, it uses a spatial stochastic frontier framework that integrates spatial econometric techniques with stochastic frontier panel-data models. The empirical analysis reveals there is a strong geographical pattern of regional efficiency, while the degree of average regional efficiency has increased steadily year by year. From a European regional policy perspective, we can conclude that differentiated development strategies seem more appropriate than homogeneous or best-practice investment approaches.
               
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