NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Unconditional Convergence

Dani Rodrik

NBER Working Paper No. 17546
Issued in October 2011
NBER Program(s):   EFG   ITI   PR

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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Document Object Identifier (DOI): 10.3386/w17546

Published: “Unconditional Convergence in Manufacturing,” Quarterly Journal of Economics, 128 (1), February 2013, 165-204.

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