Absolute Convergence of Output per Worker in Manufacturing and the Economy as a Whole
What Does the Evidence Say?
DOI:
https://doi.org/10.59339/de.v63i241.648Keywords:
Convergence, Divergence, Growth RegressionsAbstract
In this paper we revisit the empirical evidence of the hypothesis of absolute convergence across countries in 1950-2019, focusing on output per worker. We also test Rodrik’s (2013) hypothesis of absolute convergence in output per worker in manufacturing by using a newly built database which for the first time measures the former in terms of purchasing power parity, to be able to study the relationship between convergence in manufacturing and convergence across the economy in 1970-2018. We find robust evidence of cross-country absolute convergence in output per worker since 2000 and we consistently reject Rodrik’s hypothesis of absolute convergence in manufacturing along nonconvergence across the economy.
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