2019
DOI: 10.1111/pirs.12401
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Growth‐instability frontier and industrial diversification: Evidence from European gross value added

Abstract: The paper applies the modern portfolio theory and stochastic frontier analysis to gross value added growth rates in Europe and presents evidence of convex growth‐instability frontiers. Using their national accounts by economic activity, numerical simulations of gross value added shares show that in 2011, industry portfolios were below Markowitz's efficient frontier and that rearranging the share of economic activities lead to efficiency gains in terms of lower output instability and higher growth rates. Gross … Show more

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Cited by 9 publications
(3 citation statements)
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“…In the long term, this process may lead to convergence in the export structures of neighboring regions. Other studies (Hafner, 2018;Isaksen, 2015;Mao & He, 2019) also show that the emergence of a new industry in the region may depend upon similar external factors, and this applies primarily to export-oriented industries. For example, the variety of export specializations in China's prefectures has shifted from coastal regions to the neighboring ones over the last decade or so (Mao & He, 2019).…”
Section: Regional Diversification: Why Do New Specialization Industri...mentioning
confidence: 93%
“…In the long term, this process may lead to convergence in the export structures of neighboring regions. Other studies (Hafner, 2018;Isaksen, 2015;Mao & He, 2019) also show that the emergence of a new industry in the region may depend upon similar external factors, and this applies primarily to export-oriented industries. For example, the variety of export specializations in China's prefectures has shifted from coastal regions to the neighboring ones over the last decade or so (Mao & He, 2019).…”
Section: Regional Diversification: Why Do New Specialization Industri...mentioning
confidence: 93%
“…Its advantages are simple and clear, but it has difficulty reflecting the multi-dimensional characteristics of HQD. Some scholars believe that the rate of added value is closely related to the quality of economic growth [28,29]. Some scholars use real per capita GDP to characterize HQD [30][31][32].…”
Section: Literature Reviewmentioning
confidence: 99%
“…There are two methods for measuring the HQD index: the first method is the measurement of a single indicator. HQD is mainly measured by indicators, such as total factor productivity [11,12], value-added rate [13,14], the intermediate input-output ratio of enterprises, investment efficiency, and labor productivity growth [15,16]. In addition, with the increasing attention to resource and environmental issues, many scholars have constructed indicators of green/ecological total factor productivity [17,18].…”
Section: Introductionmentioning
confidence: 99%