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Unconditional Convergence

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  • Dani Rodrik

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

  • Dani Rodrik, 2011. "Unconditional Convergence," NBER Working Papers 17546, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:17546
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    1. Levchenko, Andrei A. & Zhang, Jing, 2016. "The evolution of comparative advantage: Measurement and welfare implications," Journal of Monetary Economics, Elsevier, vol. 78(C), pages 96-111.
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    4. Philippe Aghion & Steven Durlauf (ed.), 2005. "Handbook of Economic Growth," Handbook of Economic Growth, Elsevier, edition 1, volume 1, number 1.
    5. Bernard, Andrew B & Jones, Charles I, 1996. "Productivity and Convergence across U.S. States and Industries," Empirical Economics, Springer, vol. 21(1), pages 113-135.
    6. Jonathan R. W. Temple, 1998. "Robustness tests of the augmented Solow model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(4), pages 361-375.
    7. Dani Rodrik, 2011. "The future of economic convergence," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 13-52.
    8. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-1085, December.
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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 Group Munich.
    3. Sergey Drobyshevsky, 2015. "Do we need a global ‘central planner’ and ‘optimal’ economic policy for all?," Working Papers 144, Gaidar Institute for Economic Policy, revised 2015.
    4. 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.
    5. 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.
    6. Dijk, Michiel van, 2013. "Productivity growth at the sectoral level: measurement and projections," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152268, International Agricultural Trade Research Consortium.
    7. Ricardo Argüello, 2017. "Trade diversification in Colombia, 1991-2011," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, vol. 36(71), pages 345-378, July.
    8. Agustín S. Bénétrix & Kevin H. O’Rourke & Jeffrey G. Williamson, 2012. "The Spread of Manufacturing to the Periphery 1870-2007: Eight Stylized Facts," Working Papers 0021, European Historical Economics Society (EHES).
    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. Mau, Vladimir & Ulyukaev, Sergey, 2015. "Global Crisis and the Economic Policy Challenges of Modern Russia," Published Papers dok23, Russian Presidential Academy of National Economy and Public Administration.
    11. Reda Cherif & Fuad Hasanov, 2014. "Soaring of the Gulf Falcons; Diversification in the GCC Oil Exporters in Seven Propositions," IMF Working Papers 14/177, International Monetary Fund.
    12. Ghani, Ejaz & Kanbur, Ravi, 2013. "Urbanization and (in)formalization," Policy Research Working Paper Series 6374, The World Bank.
    13. 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.

    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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