Discussion paper

DP8631 Unconditional Convergence

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.

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Citation

Rodrik, D (2011), ‘DP8631 Unconditional Convergence‘, CEPR Discussion Paper No. 8631. CEPR Press, Paris & London. https://cepr.org/publications/dp8631