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Is the convergence of the manufacturing sector unconditional?

Author

Listed:
  • Juliano Assunção

    (Department of Economics, Pontifical Catholic University of Rio de Janeiro, Rio de Janeiro, RJ, Brazil)

  • Priscilla Burity

    (Department of Economics, Pontifical Catholic University of Rio de Janeiro, Rio de Janeiro, RJ, Brazi)

  • Marcelo C. Medeiros

    (Department of Economics, Pontifical Catholic University of Rio de Janeiro, Rio de Janeiro, RJ, Brazi)

Abstract

In Unconditional Convergence, Rodrik (2011b) documented that manufacturing industries exhibit unconditional convergence in labor productivity. We provide a novel semi-parametric specification for convergence equations and show that the speed of convergence varies systematically with country-specific characteristics. We consider the flexible smooth transition model with multiple transition variables, which allows each group to have distinct dynamics controlled by a linear combination of known variables. We found evidence that the laws of motion for industry productivity growth are different across countries, varying with political institutions. The speed of convergence also has a non-monotonic relationship with trade openness and education.

Suggested Citation

  • Juliano Assunção & Priscilla Burity & Marcelo C. Medeiros, 2015. "Is the convergence of the manufacturing sector unconditional?," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 16(3), pages 273-294.
    • Handle: RePEc:anp:econom:v:16:y:2015:3:273_294
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    Citations

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    Cited by:

    1. Andriansyah & Asep Nurwanda & Bakhtiar Rifai, 2023. "Structural Change and Regional Economic Growth in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 59(1), pages 91-117, January.
    2. Tzen-Ying Ling, 2021. "Investigating the malleable socioeconomic resilience pathway to urban cohesion: a case of Taipei metropolitan area," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13016-13041, September.

    More about this item

    Keywords

    Unconditional convergence; Semiparametric models; Productivity growth;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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