Productivity Convergence : Is Anyone Catching Up?
Labor productivity in EMDEs is just under one-fifth of the advanced economy average, while in LICs, it is just 2 percent. Average productivity growth in EMDEs has picked up rapidly since 2000, renewing interest in the convergence hypothesis, which...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/770631599049513984/Productivity-Convergence-Is-Anyone-Catching-Up http://hdl.handle.net/10986/34425 |
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okr-10986-344252022-09-20T00:09:53Z Productivity Convergence : Is Anyone Catching Up? Kindberg-Hanlon, Gene Okou, Cedric CONVERGENCE CATCHING UP MACROECONOMIC PRODUCTIVITY ECONOMIC DEVELOPMENT EMERGING MARKET ECONOMIES LABOR PRODUCTIVITY Labor productivity in EMDEs is just under one-fifth of the advanced economy average, while in LICs, it is just 2 percent. Average productivity growth in EMDEs has picked up rapidly since 2000, renewing interest in the convergence hypothesis, which predicts that economies with low productivity should close productivity gaps over time. However, the average rate of convergence remains low, with current growth differentials halving the productivity gap only after over 100 years. Behind the low average pace of convergence lies considerable diversity among groups of countries converging toward different productivity levels (convergence clubs). Many EMDEs have moved into higher-level productivity convergence clubs since 2000, with 16 joining the highest club, primarily consisting of advanced economies. These transitioning EMDEs have been characterized by systematically better initial education levels, greater institutional quality, and high or deepening economic complexity relative to their income level, frequently aided by policies to encourage participation in global value chains. Countries seeking to replicate successes, or continue along rapid convergence paths, face a range of headwinds, including a more challenging environment to gain market share in manufacturing production or to increase global value chain integration. 2020-09-03T15:26:38Z 2020-09-03T15:26:38Z 2020-09 Working Paper http://documents.worldbank.org/curated/en/770631599049513984/Productivity-Convergence-Is-Anyone-Catching-Up http://hdl.handle.net/10986/34425 English Policy Research Working Paper;No. 9378 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
CONVERGENCE CATCHING UP MACROECONOMIC PRODUCTIVITY ECONOMIC DEVELOPMENT EMERGING MARKET ECONOMIES LABOR PRODUCTIVITY |
| spellingShingle |
CONVERGENCE CATCHING UP MACROECONOMIC PRODUCTIVITY ECONOMIC DEVELOPMENT EMERGING MARKET ECONOMIES LABOR PRODUCTIVITY Kindberg-Hanlon, Gene Okou, Cedric Productivity Convergence : Is Anyone Catching Up? |
| relation |
Policy Research Working Paper;No. 9378 |
| description |
Labor productivity in EMDEs is just
under one-fifth of the advanced economy average, while in
LICs, it is just 2 percent. Average productivity growth in
EMDEs has picked up rapidly since 2000, renewing interest in
the convergence hypothesis, which predicts that economies
with low productivity should close productivity gaps over
time. However, the average rate of convergence remains low,
with current growth differentials halving the productivity
gap only after over 100 years. Behind the low average pace
of convergence lies considerable diversity among groups of
countries converging toward different productivity levels
(convergence clubs). Many EMDEs have moved into higher-level
productivity convergence clubs since 2000, with 16 joining
the highest club, primarily consisting of advanced
economies. These transitioning EMDEs have been characterized
by systematically better initial education levels, greater
institutional quality, and high or deepening economic
complexity relative to their income level, frequently aided
by policies to encourage participation in global value
chains. Countries seeking to replicate successes, or
continue along rapid convergence paths, face a range of
headwinds, including a more challenging environment to gain
market share in manufacturing production or to increase
global value chain integration. |
| format |
Working Paper |
| author |
Kindberg-Hanlon, Gene Okou, Cedric |
| author_facet |
Kindberg-Hanlon, Gene Okou, Cedric |
| author_sort |
Kindberg-Hanlon, Gene |
| title |
Productivity Convergence : Is Anyone Catching Up? |
| title_short |
Productivity Convergence : Is Anyone Catching Up? |
| title_full |
Productivity Convergence : Is Anyone Catching Up? |
| title_fullStr |
Productivity Convergence : Is Anyone Catching Up? |
| title_full_unstemmed |
Productivity Convergence : Is Anyone Catching Up? |
| title_sort |
productivity convergence : is anyone catching up? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/770631599049513984/Productivity-Convergence-Is-Anyone-Catching-Up http://hdl.handle.net/10986/34425 |
| _version_ |
1764480870987595776 |