Productivity convergence in OECD manufacturing industries

Carree, Martin; Klomp, Luuk; Thurik, Roy

doi:10.1016/s0165-1765(99)00228-1

Cited by 41 publications

(27 citation statements)

References 13 publications

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“…17 It can be shown that a free-trade equilibrium with FPE exists in this model economy. The author can provide the proof upon request.…”

Section: Probability Of Exportingmentioning

confidence: 80%

“…The last category is excluded because of its miscellaneous status. The first three categories are excluded because these industries are extremely concentrated (Carree et al, 2000). In the data used in the present study, the number of active (domestic) firms is significantly lower in these industries compared to other three-digit industries in Chile, Colombia, and India.…”

Section: Chilementioning

confidence: 95%

“…16 The righthand side (the third term) of the inequality above will be equal to one when free trade leads to factor price equalization (FPE). 17 This difference in equilibrium relative factor reward implies that the impacts of costly trade will differ across countries and industries due to factor proportion-based comparative advantage. The profits derived from exporting will also vary across countries, across industries, and across heterogeneous firms.…”

Section: Factor Pricesmentioning

confidence: 99%

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Comparative Advantage, Firm Heterogeneity, and Selection of Exporters

Kamata¹

2010

SSRN Journal

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This paper investigates how the fraction of exporting firms among domestic firms in a country differs across industries, depending on a country's comparative advantage. A model, which extends work by Melitz (2003) and Bernard, Redding and Schott (2007), describes an economy that comprises two countries asymmetrically endowed with two production factors, many industries differing in the relative intensity of the two production factors, and a continuum of firms differing in productivity. The model predicts a comparative advantagedriven pattern of the exporter selection: the fractions of exporting firms among all domestic firms are ranked according to the order of industries' relative intensities of a production factor with which the country is relatively well-endowed. This quasi-Heckscher-Ohlin prediction about the exporter fraction is empirically tested using data from the manufacturing censuses of Chile, Colombia, India, and the United States. The result of the analysis shows that the correlation between the exporter fractions and industry skill intensities is larger, or more positive, for a country with higher skilled-labor abundance, which confirms the theoretical prediction and demonstrates the role of comparative advantage in exporter selection.JEL classification: F11, F12, L11

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“…17 It can be shown that a free-trade equilibrium with FPE exists in this model economy. The author can provide the proof upon request.…”

Section: Probability Of Exportingmentioning

confidence: 80%

Section: Chilementioning

confidence: 95%

Section: Factor Pricesmentioning

confidence: 99%

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Comparative Advantage, Firm Heterogeneity, and Selection of Exporters

Kamata¹

2010

SSRN Journal

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“…Although both of these two measures have been used in assessing regional income and/or productivity convergence, the results are not always conclusive. The empirical evidence shows that β -convergence is a necessary but not a sufficient condition for σ -convergence (Barro andSala-I-Martin, 1995 andCaree et al, 2000).…”

Section: Review Of Convergence Modelsmentioning

confidence: 94%

Industrial Productivity Convergence in China

Bai

2004

Journal of Chinese Economic and Business Studies

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This paper examines the convergence process of industrial productivity between Chinese regions. Both σ -and β -convergences are investigated using a panel data set of 30 provinces and autonomous regions over the period [1985][1986][1987][1988][1989][1990][1991][1992][1993][1994][1995][1996][1997][1998][1999]. Unconditional σ -and β -convergence methods fail to detect productivity convergence over the whole sample period, although they suggest convergence during a sub-period [1985][1986][1987][1988][1989][1990]. The estimates of a human capital enhanced production function, with the constant return to scale constraint, show that productivity gaps between Chinese regions declined during 1985-1999 with a rate of convergence of around 1.3% per annum. Similar results are also found when the data are disaggregated into three broader geographic regions.

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“…Their main result was a lack of convergence in the manufacturing sector as opposed to unconditional convergence in services. Other authors, such as Carree, Klomp, and Thurik (2000) working on 18 OECD countries between 1972 and 1992, found that convergence varies greatly by industry. They explained this phenomenon by the existence of substantial differences in knowledge and capital.…”

mentioning

confidence: 99%

Patterns of Specialization and (Un)conditional Convergence: The Cases of Brazil, China and India

Hadengue

Warin

2014

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We propose to measure economic convergence for three emerging countries: Brazil/China/India. A first result is that the higher the level of productivity in an industry, the lower its growth rate, showing a convergence to the productivity frontier represented by the U.S. A first contribution is to propose a new definition of convergence, based on labor productivity vis-à-vis the technological frontier. A second contribution is that we use industry-level data to measure convergence. In doing so, we aim to reduce the biases of using trade data collected at the national level as in previous models.

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Productivity convergence in OECD manufacturing industries

Cited by 41 publications

References 13 publications

Comparative Advantage, Firm Heterogeneity, and Selection of Exporters

Comparative Advantage, Firm Heterogeneity, and Selection of Exporters

Industrial Productivity Convergence in China

Patterns of Specialization and (Un)conditional Convergence: The Cases of Brazil, China and India

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