Friday, July 27, 2012

dani boy : "Despite the lack of convergence among economies as a whole, there is apparently quite strong convergence within manufacturing industries. "




 "... manufacturing sectors that are further away from the technological frontier tend to experience more rapid productivity growth."


"... regardless of the quality of domestic policies, institutions, or geography. "

" Manufacturing productivity converges even if you are in a remote country with lousy policies and institutions. ie  unconditional convergence"


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:


"why don't economies as a whole convergence, if manufacturing experiences strong convergence. ?"


 three components:

"First, non-manufacturing does not exhibit convergence."

agriculture ?
my guess we need to dis entangle the ag economy
pulling out its modern capitalist  sector
still dwarfed by the traditional "whatever "  sector

commerce ?

walmartization might be a recent stage burst
happening now only in  advanced national  economies

services ?

info rev again gives advanced economies an edge

"  Second, manufacturing’s impact on aggregate convergence
 is curtailed by its very small share of employment,
 especially in the poorer countries."

swamped by traditional sector employment

"  Third, the growth boost from the shift of labor
from less productive non-manufacturing
 to more productive manufacturing is not
   sufficiently and systematically greater in poorer economies. "

sso are future South nation emergery   lookin' dismal ? :

because

"Almost all of the growth miracles of the last 60 years
were based on rapid industrialization."

but

" Today, technological changes and global competition
are fostering rapid de-industrialization
(in terms of employment shares) almost everywhere."

"  This makes me wonder whether the kind of rapid growth
 experienced by countries like South Korea, Taiwan, and China
will ever become possible elsewhere. "


this amounts to one point

rapid gains by emerging nations
  in  share of global industrial export products
are unlikely to be fast enough to drive a rapid growth rate