Evolution of the agricultural productivity in the European regions: A convergence analysis with dynamic data panel methods

This paper analyses whether there is a convergence process in terms of labour productivity in the European Union (EU) agricultural sector, for a set of 125 regions in the period 1986-2004. For this purpose, we propose a dynamic panel data model. Results confirm that agricultures move very close to their stationary states which differ among themselves, in such a way that productivity differences will persist in the long term. These results are confirmed by a distribution dynamics analysis. Regional disparities across the European agricultures are large and persistent.