| Summary: | <p>The empirical tests of the convergence hypothesis conducted in this paper evaluate the sector-specific differences in the speed of reduction of the productivity gaps across the Italian regions. Convergence of output per worker across industries and regions in 1981-94 is confirmed by means of cross-section results, by panel unit root tests which detect the presence of a mean reverting component in output growth rates for the entire economy and its industrial sector, and by significant catching-up between the most productive area, Lombardia, and the other Italian regions. However, for most of the service sectors it is not possible to reject the presence of a unit root in output and the higher persistence of their output dynamics is generally associated to a velocity of reduction of the initial productivity gaps slower than the aver-age. Regarding the industrial activities, the prevalence of a transitory com-ponent on output dynamics coexists with regional convergence in most cases; however, some manufacturing sectors evidence important permanent impulses and convergence does not hold.</p><p> </p><p> </p><p><strong>JEL Codes:</strong> C33, E32, R11</p><p><strong>Keywords: </strong></p>
|
|---|
