Unconditional Convergence in Manufacturing

S-Tier
Journal: Quarterly Journal of Economics
Year: 2013
Volume: 128
Issue: 1
Pages: 165-204

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Unlike economies as a whole, manufacturing industries exhibit strong unconditional convergence in labor productivity. The article documents this at various levels of disaggregation for a large sample covering more than 100 countries over recent decades. The result is highly robust to changes in the sample and specification. The coefficient of unconditional convergence is estimated quite precisely and is large, at between 2--3% in most specifications and 2.9% a year in the baseline specification covering 118 countries. The article also finds substantial sigma convergence at the two-digit level for a smaller sample of countries. Despite strong convergence within manufacturing, aggregate convergence fails due to the small share of manufacturing employment in low-income countries and the slow pace of industrialization. Because of data coverage, these findings should be as viewed as applying to the organized, formal parts of manufacturing. JEL Codes: O40, O14 Copyright 2013, Oxford University Press.

Technical Details

RePEc Handle
repec:oup:qjecon:v:128:y:2013:i:1:p:165-204
Journal Field
General
Author Count
1
Added to Database
2026-01-29