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Sectoral productivity trends: convergence islands in oceans of non-convergence

Author

Listed:
  • Fulvio Castellacci

    ()

  • Bart Los

    ()

  • Gaaitzen Vries

    ()

Abstract

Growth theory argues that thresholds can lead to multiple growth regimes, which are reflected in heterogeneous patterns of cross-country convergence and divergence. We study sectoral convergence patterns by using a new longitudinal sectoral database for 65 developed and developing countries. We employ an econometric method, quantile smoothing splines, which explicitly allows for identification of parameter heterogeneity both with regard to initial conditions (X-heterogeneity) and growth performances (Y-heterogeneity). Findings suggest that convergence is rather the exception than the rule. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Fulvio Castellacci & Bart Los & Gaaitzen Vries, 2014. "Sectoral productivity trends: convergence islands in oceans of non-convergence," Journal of Evolutionary Economics, Springer, vol. 24(5), pages 983-1007, November.
  • Handle: RePEc:spr:joevec:v:24:y:2014:i:5:p:983-1007
    DOI: 10.1007/s00191-014-0386-0
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    Citations

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    Cited by:

    1. Murat Ungor, 2017. "Productivity Growth and Labor Reallocation: Latin America versus East Asia," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 24, pages 25-42, March.
    2. repec:eee:proeco:v:193:y:2017:i:c:p:465-478 is not listed on IDEAS
    3. Wolfgang Britz & Roberto Roson, 2018. "Exploring Long Run Structural Change with a Dynamic General Equilibrium Model," Working Papers 2018: 12, Department of Economics, University of Venice "Ca' Foscari".
    4. repec:bpj:rmeecf:v:13:y:2017:i:1:p:14:n:4 is not listed on IDEAS
    5. Roberto Roson, 2017. "Understanding the Global Dynamics of Sectoral Labor Productivity," Working Papers 2017:15, Department of Economics, University of Venice "Ca' Foscari".

    More about this item

    Keywords

    Sectoral productivity; Cross-country convergence; Parameter heterogeneity; Quantile smoothing splines; C14; O47;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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