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Journal ArticleDOI

Unconditional Convergence in Manufacturing

Dani Rodrik
- 01 Feb 2013 - 
- Vol. 128, Iss: 1, pp 165-204
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TLDR
The authors found that manufacturing industries exhibit strong unconditional convergence in labor productivity and showed that despite strong convergence within manufacturing, aggregate convergence fails due to the small share of manufacturing employment in low-income countries and slow pace of industrialization.
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.

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High Order Openness

TL;DR: The authors proposed a new measure of high order trade, labeled HOT, based on the fraction of a sector's downstream uses that cross a border to evaluate a sector exposure to foreign shocks abstracting altogether from observed direct trade, which they exploit to construct instruments for openness.
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Three Varieties of Africa’s Industrial Future

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The impact of surges in net private capital inflows on manufacturing, investment, and unemployment

TL;DR: In this paper, the authors examined the dynamic response of surges in net private capital inflows on the output and employment shares of manufacturing, the investment output ratio, and the unemployment rate.
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Resource-based economies and deindustrialisation: an Indonesian perspective on sub-Saharan Africa

TL;DR: In this article, the authors compare recent development in sub-Saharan Africa to other regions, particularly Southeast Asia, to illustrate how a resource abundant nation can industrialise, as rapid growth in staple food production resulted in economically cheap labour.
References
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Journal ArticleDOI

Biases in Dynamic Models with Fixed Effects

Stephen Nickell
- 01 Nov 1981 - 
Journal ArticleDOI

Convergence across States and Regions

TL;DR: In this paper, the authors use the neoclassical growth model as a framework to study convergence across the forty-eight contiguous U.S. states using data on personal income since 1840 and on gross state product since 1963.
Posted Content

Productivity Growth, Convergence and Welfare: What the Long Run Data Show

TL;DR: Maddison's 1870-1979 data are analyzed, showing the historically unprecedented growth in productivity, GDP per capita and exports and the remarkable convergence of productivities of industrialized market economies, with convergence apparently shared by planned economies but not less developed countries as discussed by the authors.
Book

Handbook of Economic Growth

TL;DR: The Handbook of Economic Growth as discussed by the authors summarizes recent advances in theoretical and empirical work while offering new perspectives on a range of growth mechanisms, from the roles played by institutions and organizations to the ways factors beyond capital accumulation and technological change can affect growth.
Posted Content

Productivity Growth, Convergence, and Welfare: What the Long-Run Data Show

TL;DR: Maddison's 1870-1979 data are analyzed, showing the historically unprecedented growth in productivity, gross domestic product per capita and exports and the remarkable convergence of productivities of industrialized market economies, with convergence apparently shared by planned economies but not less developed countries.
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