We find very fast convergence in productivity for the 99 3-digit European industries over the 1985-1998 period. According to our estimates half of any productivity gap is closed on average in 10 years. The speed of convergence is much higher than obtained previously in the literature....

This paper implements a panel data approach for studying the determinants of and relationships between bilateral economic activities in terms of both trade and foreign direct investment between the EU member states. The familiar equation for testing the determinants of bilateral exports is...