Sectoral Productivity, Structural Change and Convergence
The concept of convergence, defined either narrowly, through productivity or income per capita, or broadly, across a range of economic variables, has become fundamental to the way we assess, analyse and project economic growth in developing economies. To the extent that economic growth projections are designed to reflect empirical behaviour, there is a need to identify relationships between and within key projection variables. To date the empirical analysis of convergence has been controversial. There is a strong argument that economic growth should be projection at a detailed sectoral level (see McKibbin et al (2009)). In practice, data limitations mean that industry level relationships are difficult to uncover and macroeconomic aggregate behaviours are often imposed on disaggregated data. The analysis in this paper attempts to uncover the key cross country trends in sectoral level productivity data. Whilst productivity convergence is evident in some sectors, generally service sectors, it is not evident in others. In part, aggregate convergence trends across developed economies appear to be driven by structural change. We generalise this result and argue that a combination of convergence and structural development assumptions could improve the empirical relevance of economic growth projection models.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: http://cama.crawford.anu.edu.auEmail:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Peter C.B. Phillips & Donggyu Sul, 2007.
"Transition Modeling and Econometric Convergence Tests,"
Cowles Foundation Discussion Papers
1595, Cowles Foundation for Research in Economics, Yale University.
- Peter C. B. Phillips & Donggyu Sul, 2007. "Transition Modeling and Econometric Convergence Tests," Econometrica, Econometric Society, vol. 75(6), pages 1771-1855, November.
- Jorgenson, D.W. & Timmer, Marcel, 2010.
"Structural Change in Advanced Nations: A New Set of Stylised Facts,"
GGDC Research Memorandum
GD-115, Groningen Growth and Development Centre, University of Groningen.
- Dale W. Jorgenson & Marcel P. Timmer, 2011. "Structural Change in Advanced Nations: A New Set of Stylised Facts," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(1), pages 1-29, 03.
- Sala-i-Martin, Xavier X., 1996.
"Regional cohesion: Evidence and theories of regional growth and convergence,"
European Economic Review,
Elsevier, vol. 40(6), pages 1325-1352, June.
- Sala-i-Martin, Xavier, 1994. "Regional Cohesion: Evidence and Theories of Regional Growth and Convergence," CEPR Discussion Papers 1075, C.E.P.R. Discussion Papers.
- Xavier Sala-i-Martin, 1994. "Regional cohesion: Evidence and theories of regional growth and convergence," Economics Working Papers 104, Department of Economics and Business, Universitat Pompeu Fabra.
- Phillips, Peter C.B. & Sul, Donggyu, 2007. "Some empirics on economic growth under heterogeneous technology," Journal of Macroeconomics, Elsevier, vol. 29(3), pages 455-469, September.
- McKibbin, Warwick J. & Pearce, David & Stegman, Alison, 2007. "Long term projections of carbon emissions," International Journal of Forecasting, Elsevier, vol. 23(4), pages 637-653.
- Vries, Gaaitzen J. de & Los, Bart & Castellacci, Fulvio, 2010. "Sectoral Productivity Trends:Convergence Islands in Oceans of Divergence," GGDC Research Memorandum GD-118, Groningen Growth and Development Centre, University of Groningen.
- repec:sae:ecolab:v:12:y:2001:i:2:p:285-302 is not listed on IDEAS
- Xavier Sala-i-Martin, 2002.
"15 Years of New Growth Economics : What Have we Learnt?,"
Journal Economía Chilena (The Chilean Economy),
Central Bank of Chile, vol. 5(2), pages 5-15, August.
- Xavier Sala-i-Martin, 2001. "15 years of new growth economics: What have we learnt?," Economics Working Papers 620, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 2002.
- Xavier Sala-i-Martin, 2002. "15 Years of New Growth Economics: What Have We Learnt?," Working Papers Central Bank of Chile 172, Central Bank of Chile.
- Xavier Sala-i-Martin, 2002. "15 years of new growth economics: What have we learnt?," Discussion Papers 0102-47, Columbia University, Department of Economics.
- Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, vol. 86(5), pages 1216-38, December.
- Warwick J. McKibbin & Alison Stegman, 2005. "Convergence And Per Capita Carbon Emissions," CAMA Working Papers 2005-10, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Martin Carree & Luuk Klomp, 1997. "Testing The Convergence Hypothesis: A Comment," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 683-686, November.
When requesting a correction, please mention this item's handle: RePEc:een:camaaa:2011-32. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cama Admin)
If references are entirely missing, you can add them using this form.