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Technical Diffusion, Productivity Convergence and Specialisation in OECD Manufacturing

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  • Dirk Frantzen

Abstract

A panel data regression analysis investigates the issue of total factor productivity (TFP) convergence in OECD manufacturing during the period 1970-1995. The results imply: conditional β convergence, actual catching up and stronger convergence at a disaggregate level than at the level of manufacturing as a whole. The evolution of the standard deviation of the log of TFP shows that there is also evidence of σ convergence. The stronger convergence of TFP at a disaggregate level is explained by a high level of OECD manufacturing production specialisation, which is also shown to be very persistent. The degree of research specialisation is shown to be even higher and equally sticky. A correlation analysis shows that both specialisation patterns are related.

Suggested Citation

  • Dirk Frantzen, 2007. "Technical Diffusion, Productivity Convergence and Specialisation in OECD Manufacturing," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(1), pages 75-98.
    • Handle: RePEc:taf:irapec:v:21:y:2007:i:1:p:75-98
    DOI: 10.1080/02692170601035017
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