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Examination of Material Productivity Convergence

In: Development Patterns of Material Productivity

Author

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  • Larissa Talmon-Gros

    (University of Hohenheim)

Abstract

This chapter contains the main empirical analysis of material productivity convergence. Firstly, σ-convergence is analyzed by means of the standard deviation and the coefficient of variation. Next, absolute and relative β-convergence, i.e., convergence of growth rates, are analyzed by means of cross-sectional and panel regression approaches. Moreover, in Sect. 9.3 convergence of levels of material productivity, the so-called time-series forecast convergence, is analyzed by means of panel unit root testing. This setup is also used to test for convergence club. Possible convergence clubs are determined on the basis of three approaches: The first distinction is based on an analysis of the correlation between GDP and material consumption and concomitant growth rates of material productivity. Secondly, the hypothesis that backwardness bears an advantage is used as grouping criterion, and finally the state and development of the service sector is used as a club determinant.

Suggested Citation

  • Larissa Talmon-Gros, 2014. "Examination of Material Productivity Convergence," Contributions to Economics, in: Development Patterns of Material Productivity, edition 127, chapter 0, pages 135-164, Springer.
    • Handle: RePEc:spr:conchp:978-3-319-02538-4_9
    DOI: 10.1007/978-3-319-02538-4_9
    as

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