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Unconditional Convergence in Manufacturing: A Reassessment

Herrendorf, Berthold, Rogerson, Richard and Valentinyi, Ákos ORCID: https://orcid.org/0000-0002-9166-7489 (2026) Unconditional Convergence in Manufacturing: A Reassessment. American Economic Review: Insights, 8 (3). pp. 303-319. DOI https://doi.org/10.1257/aeri.20250071

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Official URL: https://doi.org/10.1257/aeri.20250071


Abstract

The movement of labor out of agriculture is a central feature of the development process. A long-held view is that successful development requires that much of the labor released from agriculture be allocated to manufacturing rather than services. Rodrik's (2013) finding of unconditional convergence for manufacturing productivity, using data from UNIDO, provided empirical support for this view. We argue that the UNIDO data are ill-suited for studying cross-country productivity dynamics. Using recently released GGDC data designed for this purpose, we revisit the issue and find no evidence of unconditional convergence in manufacturing productivity over 1990-2018.

Item Type:Article
JEL classification:D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
L60 - Industry Studies: Manufacturing: General
O13 - Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology
Q10 - Agriculture: General
Divisions:Institute of Economics
Subjects:Agriculture
DOI:https://doi.org/10.1257/aeri.20250071
ID Code:13359
Deposited By: MTMT SWORD
Deposited On:06 Oct 2026 13:38
Last Modified:06 Oct 2026 13:38

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