Do Poor Countries Catch Up to Rich Countries? Review Article on Productivity Convergence: Theory and Evidence" by Edward Wolff

• Main Author: Jonathan Haskel
• Format: Article
• Language: English
• Published: Centre for the Study of Living Standards 2016-04-01
• Series: International Productivity Monitor
• Subjects: review; labour productivity; convergence
• Online Access: http://www.csls.ca/ipm/30/haskel.pdf

This article provides a detailed review of Edward Wolff’s Productivity Convergence: Theory and Evidence. Wolff examines the long run productivity growth and convergence experience of a variety of countries from across the world. Wolff’s main contribution is the definition of two general classes of forces of convergence. He delineates “strong” forces of productivity convergence, such as the catch-up effect, capital formation, and education, from “weak” forces contributing to convergence like international trade, economic geography, and regulation. While some of the individual forces of convergence may switch categories as new research emerges, the categorization remains highly relevant. The focus on convergence suggests that non-frontier countries may not yet be in dire straits as a result of the purported recent productivity slowdown, as productivity growth may well still come from forces of convergence for years to come.