The extent of β- and σ-convergence of average labor productivity across manufacturing industries in 18 OECD countries over the period 1972–1992 shows large inter-industry differences. One reason for these differences is knowledge and capital barriers preventing the occurrence of catch-up. We find the level of average labor productivity, as a proxy for these barriers, is correlated with the extent of convergence.

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Economics Letters
Erasmus School of Economics

Carree, M., Klomp, L., & Thurik, R. (2000). Productivity convergence in OECD manufacturing industries. Economics Letters, 337–345. doi:10.1016/S0165-1765(99)00228-1