Productivity in Emerging-Market Economies: Slowdown or Stagnation?

32 Pages Posted: 10 Nov 2018

See all articles by Jose de Gregorio

Jose de Gregorio

Central Bank of Chile; Universidad de Chile; National Bureau of Economic Research (NBER)

Date Written: October 17, 2018

Abstract

This paper analyzes productivity growth trends in emerging-market economies vis-à-vis advanced economies, both in the recent global productivity slowdown and from a long-term perspective. While income has converged in most countries in the last three decades, total factor productivity has diverged. Periods of high productivity growth coincide with episodes of output accelerations, while during normal times productivity growth is modest. Most recently, the correlation between productivity growth in emerging markets and advanced economies has increased. This paper analyzes potential factors explaining this increase, which presumably is due to the slowdown in trade and microeconomic factors that underlie technology diffusion. It concludes with a discussion of long-term challenges and opportunities facing emerging-market economies in a low productivity environment.

Keywords: Productivity Growth, Emerging Markets, Income Convergence

JEL Classification: O40, O47, O57

Suggested Citation

de Gregorio, Jose, Productivity in Emerging-Market Economies: Slowdown or Stagnation? (October 17, 2018). Peterson Institute for International Economics Working Paper No. 18-12, Available at SSRN: https://ssrn.com/abstract=3268918 or http://dx.doi.org/10.2139/ssrn.3268918

Jose De Gregorio (Contact Author)

Central Bank of Chile ( email )

Agustinas 1180
Santiago
Chile

Universidad de Chile ( email )

Ministry of Finance Teatinos l20 - Piso l2
Santiago
Chile

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
108
Abstract Views
644
Rank
518,536
PlumX Metrics