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