Influence of gravity effect and capital-labour ratio on the diversity of labour productivity in EU countries Cover Image

Efekt grawitacyjny i techniczne uzbrojenie pracy a zróżnicowanie wydajności pracy w krajach UE
Influence of gravity effect and capital-labour ratio on the diversity of labour productivity in EU countries

Author(s): Katarzyna Mroczek, Tomasz Tokarski
Subject(s): Economy
Published by: Łódzkie Towarzystwo Naukowe
Keywords: gravity effect; labour productivity; capital-labour ratio; production function

Summary/Abstract: The aim of the research is to conduct a statistical analysis of the influence of so called gravity effect and capital-labour ratio on regional diversification of labour productivity in 28 EU countries between 2000 and 2012. The analysis is based on a macroeconomic concept of Cobb-Douglass production function extended by mentioned before gravity effect. We assume (per analogium to Newton gravity law) that gravity effect which joins two countries is directly positively related to economic potential of both countries and reversely related to the squared geographic distance between them. Hence, countries with strong economic potential and close borders, have stronger economic influence on each other, than countries with low economic potential with big distance between them. The work consists of a description of diversification of gravity effect, capital-labour ratio and labour productivity in EU countries from 2000 to 2012. Moreover, the a statistical analysis of the influence of gravity effect and capital-labour ratio on labour.

  • Issue Year: 2014
  • Issue No: 93
  • Page Range: 245-259
  • Page Count: 15
  • Language: Polish