Productivity Convergence Across Industries and Countries: The Importance of Theory-based Measurement
AbstractCross-country studies of economic growth have been hampered by the scarcity of reliable data on productivity at the sector level, see Bernard and Jones (AER, 2001) and Rogerson (JPE, 2008). We bring together literature on industry prices, human capital and capital assets to construct industry-level productivity measures that are well-grounded in neo-classical production theory. These theory-based measures differ widely from the crude measures commonly used in the literature. We use these to confirm and strengthen the finding of Bernard and Jones (AER, 1996) that for advanced OECD countries, patterns of convergence across sectors have differed since 1970: while productivity in market services converged, there is no convergence in manufacturing. More detailed analysis confirms that patterns of convergence are highly industry-specific. There is no dominant convergence trend in sectoral productivity growth across advanced countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number GD-109.
Date of creation: 2009
Date of revision:
Other versions of this item:
- Inklaar, Robert & Timmer, Marcel P., 2009. "Productivity Convergence Across Industries And Countries: The Importance Of Theory-Based Measurement," Macroeconomic Dynamics, Cambridge University Press, vol. 13(S2), pages 218-240, September.
- NEP-ALL-2009-04-13 (All new papers)
- NEP-BEC-2009-04-13 (Business Economics)
- NEP-EFF-2009-04-13 (Efficiency & Productivity)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- William Barnett & W. Erwin Diewert & Arnold Zellner, 2009.
"Introduction to Measurement with Theory,"
WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS
200906, University of Kansas, Department of Economics, revised Apr 2009.
- Barnett, William A. & Erwin Diewert, W. & Zellner, Arnold, 2011. "Introduction to measurement with theory," Journal of Econometrics, Elsevier, vol. 161(1), pages 1-5, March.
- Barnett, William A. & Diewert, W. Erwin & Zellner, Arnold, 2009. "Introduction To Measurement With Theory," Macroeconomic Dynamics, Cambridge University Press, vol. 13(S2), pages 151-168, September.
- Dijk, Michiel van, 2013.
"Productivity growth at the sectoral level: measurement and projections,"
Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain
152268, International Agricultural Trade Research Consortium.
- Dijk, Michiel van, 2013. "Productivity growth at the sectoral level: measurement and projections," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152269, International Agricultural Trade Research Consortium.
- Jorge Niosi & Petr Hanel & Susan Reid, 2012. "The international diffusion of biotechnology: the arrival of developing countries," Journal of Evolutionary Economics, Springer, vol. 22(4), pages 767-783, September.
- Heshmati, Almas & Kumbhakar, Subal C., 2011.
"A General Model of Technical Change with an Application to the OECD Countries,"
IZA Discussion Papers
6004, Institute for the Study of Labor (IZA).
- Almas Heshmati & Subal C. Kumbhakar, 2014. "A general model of technical change with an application to the OECD countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 23(1), pages 25-48, January.
- Aoki, Shuhei, 2008.
"A Simple Accounting Framework for the Effect of Resource Misallocation on Aggregate Productivity,"
11511, University Library of Munich, Germany.
- Aoki, Shuhei, 2012. "A simple accounting framework for the effect of resource misallocation on aggregate productivity," Journal of the Japanese and International Economies, Elsevier, vol. 26(4), pages 473-494.
- López-Pueyo, Carmen & Mancebón, María-Jesús, 2010. "Innovation, accumulation and assimilation: Three sources of productivity growth in ICT industries," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 268-285, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joke Bulthuis).
If references are entirely missing, you can add them using this form.