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Comovement and catch-up in productivity across sectors: Evidence from the OECD

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  • Cornwell, Christopher Mark
  • Wächter, Jens-Uwe

Abstract

A method for analyzing productivity convergence based on frontier production functions is proposed. It is examined whether departures from the frontier|country{level inefficiencies|exhibit long{run relationships and convergence. The method is applied to 1-digit industries of 14 OECD countries from 1970{90. Results suggests that comovements in efficiency are concentrated between the EU{countries. Catch{up is found in all but one sector. Even manufacturing, which previous studies have found not to display convergence, shows signs of catch-up. It is examined whether departures from the frontier|country{level inefficiencies|exhibit long{run relationships and convergence. The method is applied to 1-digit industries of 14 OECD countries from 1970{90. Results suggests that comovements in efficiency are concentrated between the EU{countries. Catch{up is found in all but one sector. Even manufacturing, which previous studies have found not to display convergence, shows signs of catch{up.

Suggested Citation

  • Cornwell, Christopher Mark & Wächter, Jens-Uwe, 1999. "Comovement and catch-up in productivity across sectors: Evidence from the OECD," ZEI Working Papers B 07-1999, University of Bonn, ZEI - Center for European Integration Studies.
    • Handle: RePEc:zbw:zeiwps:b071999
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    References listed on IDEAS

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    More about this item

    Keywords

    cointegration; convergence; economic growth; efficiency; productivity; technological diffusion; unit root;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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