Sectoral structure of employment and economic cohesion in the EU regions

Abstract

Motivation: Regional cohesion constitutes an important aim of European policy. Nevertheless, it is mainly assessed in terms of economic results analyzed at an aggregate level. Sectoral determinants of interregional differences are often neglected. However, as the structural convergence concept suggests, sectoral features may be decisive for minimizing interregional disparities.Aim: The paper searches for connections between two dimensions of economic regional cohesion in the EU: economic results and structural features. It tests a hypothesis about the coexistence of high diversification in GDP per capita and in the sectoral structures of employment. It is also aimed at identification of sectoral features that characterize the best performing economies.Results: The research results confirm a positive correlation between interregional differences in production and in sectoral structures. It indicates knowledge-intensive market services as a sector the most favorable for economic results. Moreover, it also finds that a high concentration of sectoral structures coexists with a high level of regional GDP per capita and economic efficiency.