Industrial transformations and regional inequalities in Europe

Abstract

An important channel through which less developed European countries have grown over the past twenty years is through the industrial transformation of their economies from low to higher value-added activities. The aim of the paper is to address the role of industrial transformation on regional imbalances, by analysing the different components of industrial productivity dynamics, namely the industrial composition, competition and reallocation effects. Based on both a shift-share analysis and a simulation analysis, the paper shows that the reallocation towards higher value-added sectors in Central and Eastern European (CEE) countries could in fact lead to higher regional inequalities. Our empirical results lead us to claim that short-term normative interventions should go in the direction of supporting “modern and technologically advanced traditional sectors” rather than necessarily pushing CEE countries towards a high value-added industry specialization.

Toward a more comprehensive shift‐share analysis: An illustration using regional data

“…It is important to note that within regional science, attention has increasingly shifted to the impact of regional characteristics on sectoral specialization (Capello & Cerisola, 2023; Esteban, 2000). More specifically, recent studies suggest that the differences between regions may be more attributable to intrinsic regional characteristics than to industry mix (Gómez‐Tello et al., 2020).…”

Introducing the role of the municipality of residence in studying the secondary migration of international migrants. Evidence from Lombardy (Italy)

“…Traditional geographical inequalities persist in developed countries (e.g., in Italy between northern and southern areas), and the dichotomy between central areas offering better job opportunities and life chances and marginal regions characterised by depopulation, limited economic and life opportunities and social services is becoming more pronounced (OECD, 2020). Despite evidence that interregional disparities in Europe started to increase from 2008 (Capello & Cerisola, 2022), spatial inequalities have been less explored in studying the secondary migration of international migrants compared to other personal characteristics (Manchin & Orazbayev, 2018). Existing empirical evidence suggests that locally available amenities, services and local characteristics (quality of life, including the climate and pollution) play a crucial role in the decision to stay or re-migrate (Bernard & Perales, 2021;Manchin and Orazbayev, 2018;Thomassen et al, 2023;Maza et al, 2018;Viñuela, 2021).…”

Hologram of Firms with Respect to the Productive Fabric of a Region: A Case of Business Transformation through Knowledge Transfer in Medellín (Colombia)

“…Organisational change must be planned and guided by scientific approaches, especially MMs with defined structures and a methodology with clear and organised steps that engage all individuals in the organisation. Transformations within a firm are linked to its environment and dependent on the changes that may occur in the sector to which it belongs (Mouzas, 2022), just as a network of relationships within and around organisations (Capello & Cerisola, 2023). Furthermore, the outcomes of business transformation (BT) depend on the interventions made in the dimensions that constitute the architecture of the firm (Haftor & Climent Costa, 2023).…”