Kiel Working Papers, Kiel Institute for World Economics
No 1669:
Structural Cohesion in Europe: Stylized Facts
Frank Bickenbach, Eckhardt Bode and Christiane Krieger-Boden
Abstract: This paper establishes eight stylized facts on the
evolution of the localization of economic activity across industries and
regions in the EU-15 since 1980. Localization, which nests concentration
and specialization, is measured by a Theil index. The stylized facts reveal
a broad aggregate trend towards structural convergence in the EU-15. The by
far most important drivers of this convergence have been the sectoral
structural change from highly concentrated agriculture and manufacturing
industries towards dispersed services, and a continuing dispersion of
services. The manufacturing sector, by contrast, worked against this
structural convergence as it has become spatially more concentrated. The
stylized facts also reveal that virtually all countries and most of their
regions participated in this structural convergence. The speed of aggregate
structural cohesion slowed down considerably in the early 1990s, however
Keywords: Theil index, localization, specialization, concentration, European Union, cohesion; (follow links to similar papers)
JEL-Codes: C43,; F15,; R12; (follow links to similar papers)
43 pages, December 2010
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