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Convergence in Structure and Productivity in European Manufacturing?

  • Klaus Gugler
  • Michael Pfaffermayr

We find fast convergence in productivity for 99 three-digit European industries over the 1985-98 period. Half of any productivity gap is closed on average in about 10-15 years. We explicitly formulate the steady-state assumptions for structural convergence to hold. Convergence in industrial structure is much slower than productivity catch-up with a half-life of around 50 years, a stylized fact which cannot easily be explained by the existing models of trade and growth. Copyright Verein für Socialpolitik and Blackwell Publishing Ltd. 2004.

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Article provided by Verein für Socialpolitik in its journal German Economic Review.

Volume (Year): 5 (2004)
Issue (Month): 1 (02)
Pages: 61-79

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Handle: RePEc:bla:germec:v:5:y:2004:i:1:p:61-79
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  1. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
  2. Jan Fagerberg & Bart Verspagen, 1996. "Heading for Divergence? Regional Growth in Europe Reconsidered," Journal of Common Market Studies, Wiley Blackwell, vol. 34(3), pages 431-448, 09.
  3. Jan Fagerberg, 1995. "Convergence or Divergence - The Impact of Technology," Working Papers Archives 1995524, Centre for Technology, Innovation and Culture, University of Oslo.
  4. Nelson, Richard R & Wright, Gavin, 1992. "The Rise and Fall of American Technological Leadership: The Postwar Era in Historical Perspective," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 1931-64, December.
  5. Friedman, Milton, 1992. "Do Old Fallacies Ever Die?," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 2129-32, December.
  6. Bent Dalum & Gert Villumsen, 1996. "Are OECD Export Specialisation Patterns 'Sticky'? Relations to the Convergence-Divergence Debate," DRUID Working Papers 96-3, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  7. repec:cep:stiecm:/1993/265 is not listed on IDEAS
  8. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, June.
  9. Carree, M. A. & Klomp, L. & Thurik, A. R., 2000. "Productivity convergence in OECD manufacturing industries," Economics Letters, Elsevier, vol. 66(3), pages 337-345, March.
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