Publication

Sectoral Productivity Trends: Convergence Islands in Oceans of Divergence

Castellacci, F., Los, B. & Vries, G. J. D., 2010, Groningen: GGDC, 36 p. (GGDC Working Papers; vol. GD-118).

Research output: Working paperAcademic

APA

Castellacci, F., Los, B., & Vries, G. J. D. (2010). Sectoral Productivity Trends: Convergence Islands in Oceans of Divergence. (GGDC Working Papers; Vol. GD-118). GGDC.

Author

Castellacci, Fulvio ; Los, Bart ; Vries, Gaaitzen J. de. / Sectoral Productivity Trends : Convergence Islands in Oceans of Divergence. Groningen : GGDC, 2010. (GGDC Working Papers).

Harvard

Castellacci, F, Los, B & Vries, GJD 2010 'Sectoral Productivity Trends: Convergence Islands in Oceans of Divergence' GGDC Working Papers, vol. GD-118, GGDC, Groningen.

Standard

Sectoral Productivity Trends : Convergence Islands in Oceans of Divergence. / Castellacci, Fulvio; Los, Bart; Vries, Gaaitzen J. de.

Groningen : GGDC, 2010. (GGDC Working Papers; Vol. GD-118).

Research output: Working paperAcademic

Vancouver

Castellacci F, Los B, Vries GJD. Sectoral Productivity Trends: Convergence Islands in Oceans of Divergence. Groningen: GGDC. 2010. (GGDC Working Papers).


BibTeX

@techreport{68659036118e4d31ada241e89305338e,
title = "Sectoral Productivity Trends: Convergence Islands in Oceans of Divergence",
abstract = "In their influential study on productivity growth at the sector-level, Bernard and Jones (1996, BJ) observed convergence of aggregate labor productivity levels in 14 highly developed countries in 1970-1987. They also found evidence that this could be attributed to convergence in services productivity rather than in manufacturing. The main question this paper addresses is whether this result can be generalized to a broader set of countries. Several strands of growth theory suggest that thresholds with regard to a variety of issues can lead to multiple growth regimes, which are likely to lead to very heterogeneous patterns of convergence and divergence. To analyze this, we use econometric techniques that explicitly allow for identification of parameter heterogeneity (quantile regressions and quantile smoothing splines), both with regard to initial conditions and to performance conditional on these initial productivity levels. BJ�s data are extended in several dimensions. The recently developed sectoral dataset we use spans the period 1970-2004 and covers 49 countries, including many developing countries. Overall, our findings suggest that convergence as found by BJ only applies to limited groups of country-sectors (�convergence islands�), whereas the biggest parts of our sample spaces can be considered as �oceans of divergence�.",
keywords = "quantile regression, parameter heterogeneity, convergence, sectoral productivity",
author = "Fulvio Castellacci and Bart Los and Vries, {Gaaitzen J. de}",
note = "Relation: https://www.rug.nl/ Rights: University of Groningen",
year = "2010",
language = "English",
volume = "GD-118",
series = "GGDC Working Papers",
publisher = "GGDC",
type = "WorkingPaper",
institution = "GGDC",

}

RIS

TY - UNPB

T1 - Sectoral Productivity Trends

T2 - Convergence Islands in Oceans of Divergence

AU - Castellacci, Fulvio

AU - Los, Bart

AU - Vries, Gaaitzen J. de

N1 - Relation: https://www.rug.nl/ Rights: University of Groningen

PY - 2010

Y1 - 2010

N2 - In their influential study on productivity growth at the sector-level, Bernard and Jones (1996, BJ) observed convergence of aggregate labor productivity levels in 14 highly developed countries in 1970-1987. They also found evidence that this could be attributed to convergence in services productivity rather than in manufacturing. The main question this paper addresses is whether this result can be generalized to a broader set of countries. Several strands of growth theory suggest that thresholds with regard to a variety of issues can lead to multiple growth regimes, which are likely to lead to very heterogeneous patterns of convergence and divergence. To analyze this, we use econometric techniques that explicitly allow for identification of parameter heterogeneity (quantile regressions and quantile smoothing splines), both with regard to initial conditions and to performance conditional on these initial productivity levels. BJ�s data are extended in several dimensions. The recently developed sectoral dataset we use spans the period 1970-2004 and covers 49 countries, including many developing countries. Overall, our findings suggest that convergence as found by BJ only applies to limited groups of country-sectors (�convergence islands�), whereas the biggest parts of our sample spaces can be considered as �oceans of divergence�.

AB - In their influential study on productivity growth at the sector-level, Bernard and Jones (1996, BJ) observed convergence of aggregate labor productivity levels in 14 highly developed countries in 1970-1987. They also found evidence that this could be attributed to convergence in services productivity rather than in manufacturing. The main question this paper addresses is whether this result can be generalized to a broader set of countries. Several strands of growth theory suggest that thresholds with regard to a variety of issues can lead to multiple growth regimes, which are likely to lead to very heterogeneous patterns of convergence and divergence. To analyze this, we use econometric techniques that explicitly allow for identification of parameter heterogeneity (quantile regressions and quantile smoothing splines), both with regard to initial conditions and to performance conditional on these initial productivity levels. BJ�s data are extended in several dimensions. The recently developed sectoral dataset we use spans the period 1970-2004 and covers 49 countries, including many developing countries. Overall, our findings suggest that convergence as found by BJ only applies to limited groups of country-sectors (�convergence islands�), whereas the biggest parts of our sample spaces can be considered as �oceans of divergence�.

KW - quantile regression

KW - parameter heterogeneity

KW - convergence

KW - sectoral productivity

M3 - Working paper

VL - GD-118

T3 - GGDC Working Papers

BT - Sectoral Productivity Trends

PB - GGDC

CY - Groningen

ER -

ID: 15519748