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Unconditional convergence in manufacturing

Rodrik, Dani (2013) Unconditional convergence in manufacturing. Quarterly Journal of Economics, 128 (1). pp. 165-204. ISSN 0033-5533

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Identification Number: 10.1093/qje/qjs047


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.

Item Type: Article
Official URL:
Additional Information: © 2013 The Author(s)
Divisions: Economics
Subjects: H Social Sciences > HB Economic Theory
Date Deposited: 18 Aug 2014 15:51
Last Modified: 20 Oct 2021 00:23
Funders: Center for International Development at Harvard University

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