On Productivity Convergence in European Manufacturing

UCSC Department of Economics Working Paper No. 402

Posted: 9 Oct 1998

See all articles by Antonio I. Garcia Pascual

Antonio I. Garcia Pascual

International Monetary Fund (IMF) - Western Hemisphere Department; CESifo (Center for Economic Studies and Ifo Institute)

Frank Westermann

University of Osnabrueck - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Date Written: June 1998

Abstract

This paper investigates productivity convergence in the Manufacturing sector for a set of European countries using a time series framework. We apply a panel data unit root test (PDUR) to total factor productivity (TFP) differentials, where the null hypothesis--the presence of a unit root or a deterministic component--can be interpreted as no convergence. Earlier studies have consistently found the Manufacturing sector non-converging. Our empirical analysis reveals more evidence of convergence as higher levels of disaggregation are explored. We suggest product heterogeneity as a major source for the negative findings of convergence at the aggregate level.

JEL Classification: E23, C33

Suggested Citation

Garcia Pascual, Antonio I. and Westermann, Frank, On Productivity Convergence in European Manufacturing (June 1998). UCSC Department of Economics Working Paper No. 402. Available at SSRN: https://ssrn.com/abstract=116776

Antonio I. Garcia Pascual (Contact Author)

International Monetary Fund (IMF) - Western Hemisphere Department ( email )

700 19th Street NW
Washington, DC 20431
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

Frank Westermann

University of Osnabrueck - Department of Economics ( email )

Rolandstr. 8
Osnabrueck, D-49069
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

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