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Sectoral Decomposition of Convergence in Labor Productivity : A Re-examination from a New Dataset

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  • Dieppe, Alistair, Matsuoka, Hideaki

Abstract

This paper investigates how the sector-specific source or the changing sectoral composition of labor productivity has contributed to aggregate beta convergence, using a newly constructed eight-sector database. The main findings are twofold. First, both within and sectoral reallocation have become important drivers of aggregate convergence in labor productivity. Second, agricultural productivity growth has been a significant contributor to aggregate convergence, whereas catch-up in other sectors has only contributed a small amount to convergence. The strong growth of the agriculture sector has been the most important driver of aggregate productivity convergence even though agricultural productivity itself in low-income countries is weakly converging to that in advanced economies.

Suggested Citation

  • Dieppe, Alistair, Matsuoka, Hideaki, 2021. "Sectoral Decomposition of Convergence in Labor Productivity : A Re-examination from a New Dataset," Policy Research Working Paper Series 9767, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9767
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    Cited by:

    1. Alex Rivadeneira, 2024. "Unconditional convergence in the Mexican manufacturing sector (1988-2018)," BIS Working Papers 1186, Bank for International Settlements.
    2. Rivadeneira Alex, 2023. "Unconditional Convergence in the Mexican Manufacturing Sector (1988-2018)," Working Papers 2023-06, Banco de México.
    3. Karina Acosta & Jaime Bonet-Mor�n, 2022. "Convergencia regional en Colombia en el Siglo XXI," Documentos de Trabajo Sobre Economía Regional y Urbana 20123, Banco de la República, Economía Regional.
    4. Bilenko, Yuriy, . "Labor productivity in the agriculture, structural shifts and economic growth in the Central and Eastern European countries," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(4).

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    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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