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Productivity Convergence in European Manufacturing
Author(s) -
Pascual Antonio Garcia,
Westermann Frank
Publication year - 2002
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/1467-9396.00334
Subject(s) - convergence (economics) , productivity , proxy (statistics) , economics , technological convergence , manufacturing sector , aggregate (composite) , econometrics , order (exchange) , manufacturing , industrial organization , international trade , macroeconomics , computer science , business , telecommunications , marketing , materials science , finance , machine learning , composite material
The paper empirically investigates international productivity convergence in the manufacturing sector, which was found not converging in earlier studies. The authors analyze subsectors of aggregate manufacturing in order to compare similar technologies and to avoid the mixing of converging and nonconverging subsectors in the aggregate. Some of the subsectors converge while others, as well as aggregate manufacturing, do not. There is stronger evidence of convergence in subsectors with a smaller number of different industries. The latter serves as a proxy for the variety of technologies. Overall, the results highlight the importance of comparing similar technologies when studying productivity convergence.