Patterns of Specialization and (Un)Conditional Convergence: The Cases of Brazil, China and India

31 Pages Posted: 17 Sep 2013

See all articles by Marine Hadengue

Marine Hadengue

Center for Interuniversity Research and Analysis on Organization (CIRANO)

Thierry Warin

HEC Montreal; CIRANO

Date Written: June 16, 2013

Abstract

The purpose of this paper is to highlight a version of the Balassa-Samuelson effect for emerging countries with a new dataset. More than the catching-up effect, we will measure the convergence for three emerging countries: Brazil/China/India. We will compare the convergence between these countries and the productivity frontier represented by the U.S. over the past 10 years. A first contribution is that as the distance between the level of labor productivity in Brazil (China, India) and the United States decreases, the growth rate of labor productivity within the country decreases. In other words, the higher the level of productivity in an industry, the lower its growth rate, showing a convergence to the productivity frontier. A second contribution is that there is unconditional convergence as measured at the industry level.

Keywords: economic convergence, endogenous growth, Brazil, China, India, labor productivity

JEL Classification: O40, O41, O43, O47, O53

Suggested Citation

Hadengue, Marine and Warin, Thierry, Patterns of Specialization and (Un)Conditional Convergence: The Cases of Brazil, China and India (June 16, 2013). CIRANO - Scientific Publications 2013s-17. Available at SSRN: https://ssrn.com/abstract=2326584 or http://dx.doi.org/10.2139/ssrn.2326584

Marine Hadengue

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

Thierry Warin (Contact Author)

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada

CIRANO ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

HOME PAGE: http://works.bepress.com/warin/

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