Abstract

This paper investigates labour productivity growth and regional convergence patterns in Italy over the time span 1982–2000. Starting from some evidence of spatial polarisation within Italian economy, the analysis aims at exploring the sources of this tendency. To this end, an approach based on data envelopment analysis (DEA) production frontiers is employed which allows to decompose labour productivity growth into efficiency change, technological progress and capital deepening, looking then at the relative contribution of each component to regional convergence. Moreover, some measures of human capital and public capital are used as augmentation factors of the conventional inputs. The study leads to the conclusion that polarisation is mainly due to regional differences in efficiency change.

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