Guohua Feng, Jiti Gao, Bin Peng
arXiv 31 Oct 2021 · Econometrics · publishedMacroeconomic Dynamics (2025)
arXiv:2111.00449 · PDF · DOI · OpenAlex · Extracted main text
Despite its paramount importance in the empirical growth literature, productivity convergence analysis has three problems that have yet to be resolved: (1) little attempt has been made to explore the hierarchical structure of industry-level datasets; (2) industry-level technology heterogeneity has largely been ignored; and (3) cross-sectional dependence has rarely been allowed for. This paper aims to address these three problems within a hierarchical panel data framework. We propose an estimation procedure and then derive the corresponding asymptotic theory. Finally, we apply the framework to a dataset of 23 manufacturing industries from a wide range of countries over the period 1963-2018. Our results show that both the manufacturing industry as a whole and individual manufacturing industries at the ISIC two-digit level exhibit strong conditional convergence in labour productivity, but not unconditional convergence. In addition, our results show that both global and industry-specific shocks are important in explaining the convergence behaviours of the manufacturing industries.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Rodrik (2013) `Unconditional convergence in manufacturing', Quarterly Journal of Economics 128(1), 165–204 | 1.000 | 14 | 3 | 100% |
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| 8 | Baumol (1986) `Productivity growth, convergence, and welfare: What the long-run data show', American Economic Review 76(5), 1072–1085 | 0.644 | 2 | 2 | 100% |
| 9 | De Long \ Summers (1991) `Equipment investment and economic growth', Quarterly Journal of Economics 106(2), 445–502 | 0.644 | 2 | 2 | 100% |
| 10 | Attanasio, Picci \ Scorcu (2000) `Saving, growth, and investment: A macroeconomic analysis using a panel of countries', Review of Economics and Statistics 82(2),… | 0.511 | 2 | 1 | 100% |
Showing the top 10 of 53 scored citations.