The impact of convergence in the industrial mix on regional comparative growth: Empirical evidence from the French case

Abstract

The aim of this article is to explain heterogeneities in French regional labor productivities since the mid-seventies at both aggregate and sectoral level. This paper extends the works of Baumol and of Barro and Salai-Martin, firstly by pointing out sources of growth linked to the new growth theories (research effort, size effects) and secondly by emphasizing the impact of cross-sectoral labor reallocations through a shift-share analysis. Our results show the importance of regional asymmetries and the key role played by the dynamic of sectoral composition in the convergence of labor productivities within France.