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

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Tinbergen Institute Discussion Paper Series
Tinbergen Institute

Carree, M.A, Klomp, L, & Thurik, A.R. (1999). Productivity Convergence in OECD Manufacturing Industries (No. TI 99-065/3). Tinbergen Institute Discussion Paper Series. Retrieved from