Empirical Economics

, Volume 47, Issue 3, pp 999–1027 | Cite as

Productivity in the euro area: any evidence of convergence?

  • David SondermannEmail author


Sizable prevailing real economic disparities among countries in a currency union potentially involve costs for those countries for which the aggregate policy stance is not appropriate. This paper contributes to the literature by testing for productivity convergence among euro area countries. While no convergence can be found on the aggregate level, selected service sectors and manufacturing sub-industries indicate evidence of convergence. In a search for factors influencing productivity, investments in research and development as well as a high skill level of employees are shown to be beneficial, whereas regulations constitute a burden.


Productivity Convergence Panel unit root test   Manufacturing and service sector 

JEL Classification

C33 O47 J24 L60 L80 



Helpful comments received from two anonymous referees as well as the editors of this journal, from participants of two ECB internal seminars, and specifically Reiner Martin are gratefully acknowledged.

Supplementary material


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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.European Central Bank (ECB)FrankfurtGermany

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