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Unconditional Convergence

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  • Rodrik, Dani

Abstract

Unlike economies as a whole, manufacturing industries exhibit unconditional convergence in labor productivity. The paper documents this finding for 4-digit manufacturing sectors for a large group of developed and developing countries over the period since 1990. The coefficient of unconditional convergence is estimated quite precisely and is large, at 3.0-5.6 percent per year depending on the estimation horizon. The result is robust to a large number of specification tests, and statistically highly significant. Because of data coverage, these findings should be as viewed as applying to the organized, formal parts of manufacturing.

Suggested Citation

  • Rodrik, Dani, 2011. "Unconditional Convergence," CEPR Discussion Papers 8631, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8631
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    Cited by:

    1. Vladimir Mau & Sergey Ulyukaev, 2015. "Глобальный Кризис и Вызовы Экономической Политики Современной России (Global Crisis and the Economic Policy Challenges of Modern Russia)," Working Papers 126, Gaidar Institute for Economic Policy, revised 2015.
    2. Nicholas Sly & Caroline Weber, 2013. "International Fiscal Policy Coordination and GDP Comovement," CESifo Working Paper Series 4358, CESifo.
    3. Robert Z. Lawrence & Lawrence Edwards, 2013. "US Employment Deindustrialization: Insights from History and the International Experience," Policy Briefs PB13-27, Peterson Institute for International Economics.
    4. Ghani, Ejaz & Kerr, William R. & O'Connell, Stephen D., 2013. "The exceptional persistence of India's unorganized sector," Policy Research Working Paper Series 6454, The World Bank.
    5. Gaurav Gupta & Amit Basole, 2020. "India’s Information Technology industry: prospects for growth and role in structural transformation," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 341-361, December.
    6. Dijk, Michiel van, 2013. "Productivity growth at the sectoral level: measurement and projections," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152269, International Agricultural Trade Research Consortium.
    7. Ricardo Arguello, 2017. "Trade diversification in Colombia, 1991-2011," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 36(71), pages 345-378.
    8. repec:rnp:ppaper:dok23 is not listed on IDEAS
    9. Jan Rieländer & Bakary Traoré, 2016. "Explaining Diversification in Exports Across Higher Manufacturing Content — What is the Role of Commodities?," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 1-36, June.
    10. Kevin Hjortshøj O'Rourke & Agustin S. Benetrix Jeffrey G. Williamson, 2012. "The Spread of Manufacturing to the Periphery 1870-2007: Eight Stylized Facts," Economics Series Working Papers 617, University of Oxford, Department of Economics.
    11. Ravi Kanbur & Ejaz Ghani, 2013. "Urbanization and (In)Formalization," World Bank Publications - Reports 17744, The World Bank Group.
    12. Pál Czeglédi, 2014. "The theory of interventionism as an Austrian theory of slowdowns," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 27(4), pages 419-449, December.
    13. Reda Cherif & Fuad Hasanov, 2014. "Soaring of the Gulf Falcons: Diversification in the GCC Oil Exporters in Seven Propositions," IMF Working Papers 2014/177, International Monetary Fund.

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    Keywords

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    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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