Institutions and the productivity challenge for European regions

Rodríguez-Pose, Andrés ORCID: 0000-0002-8041-0856 and Ganau, Roberto (2022) Institutions and the productivity challenge for European regions. Journal of Economic Geography, 22 (1). 1 - 25. ISSN 1468-2702

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Abstract

Europe has witnessed a considerable labour productivity slowdown in recent decades. Many potential explanations have been proposed to address this productivity ‘puzzle’. However, how the quality of local institutions influences labour productivity has been overlooked by the literature. This article addresses this gap by evaluating how institutional quality affects labour productivity growth and, particularly, its determinants at the regional level during the period 2003–2015. The results indicate that institutional quality influences regions’ labour productivity growth both directly—as improvements in institutional quality drive productivity growth—and indirectly—as the short- and long-run returns of human capital and innovation on labour productivity growth are affected by regional variations in institutional quality.

Item Type:	Article
Official URL:	https://academic.oup.com/joeg
Additional Information:	© 2021 The Authors
Divisions:	Geography & Environment
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HC Economic History and Conditions
Date Deposited:	26 Feb 2021 16:18
Last Modified:	12 Dec 2024 02:27
URI:	http://eprints.lse.ac.uk/id/eprint/108915

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