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Potential switchovers in comparative advantage: Patterns of industrial convergence

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Abstract

Although there exists a vast literature on convergence and divergence of income levels across countries or regions at the aggregate level, there is only little work on convergence and/or diver- gence processes of productivity and wage levels at the more disaggregated industrial level. These are especially important in the context of international trade as these determine the dynamics of comparative advantages and the resulting trade structures between developing and developed countries. In the first theoretical part, we discuss some theoretical aspects of uneven sectoral productivity and wage catching-up processes and their links to dynamic comparative advan- tages and trade structures. In the second part we present an econometric study of catching-up of wages, productivity, and labour unit costs. The analysis is conducted at the industrial level (ISIC 3-digit) over the period 1965-1995 for a set of catching-up economies compared to more advanced countries.

Suggested Citation

  • Michael Landesmann & Robert Stehrer, 2000. "Potential switchovers in comparative advantage: Patterns of industrial convergence," Economics working papers 2000-14, Department of Economics, Johannes Kepler University Linz, Austria.
  • Handle: RePEc:jku:econwp:2000_14
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    Cited by:

    1. repec:dau:papers:123456789/1454 is not listed on IDEAS
    2. Ivan Angelov, 2004. "Accelerated Economic Development – Theory and Practice," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 3-33.
    3. Marine Hadengue & Thierry Warin, 2013. "Patterns of Specialization and (Un)conditional Convergence: The Cases of Brazil, China and India," CIRANO Working Papers 2013s-17, CIRANO.
    4. Landesmann, Michael A. & Stehrer, Robert, 2001. "Convergence patterns and switchovers in comparative advantage," Structural Change and Economic Dynamics, Elsevier, vol. 12(4), pages 399-423, December.

    More about this item

    Keywords

    catching-up; comparative advantages; unit labour costs; convergence patterns; industrial development;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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