Search

This study explores the effect of structural change on the process of labour productivity convergence at different levels of data aggregations (regions, industries, countries), which is also known as hierarchical convergence analysis in the recent literature. Different forms of structural changes have occurred in the European Union, for instance, variations in the share of employment in different industries, variations in the demand pattern and variations in trade patterns and advancement in technology, which may have an influence on the nature of convergence. Earlier studies on convergence have neglected the effect of the structural change, which may have resulted in different conclusion about the convergence. Based on the results, the study found that the nature of convergence changes after considering the effect of the structural change. [ABSTRACT FROM AUTHOR]

The remarkable evolution of low-cost carriers (LCC's) in Europe has been subject to intensive discussions in recent years. Approaching industry maturity has revealed strategic errors among many airlines and caused several markets to exit. Various carriers have ended up in hybrid positions while trying to differentiate in order to remain competitive. This paper occupies with the role of strategies in the airline industry and assesses the level of deviation from the original low-cost model amongst European LCC's. Synthesizing existing research and literature provides evidence that LCC's adapting full-service network carrier characteristics perform worse than strict low-cost adherers. [ABSTRACT FROM AUTHOR]