Productivity Convergence among OECD Countries: The Postwar Experience

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Abstract

This article examines postwar productivity convergence among OECD countries, documenting strong catch-up from 1950 to 1990 — with the coefficient of variation in real GDP per worker falling by more than half — before convergence stalled in the 1990s. Regression analysis shows initial productivity levels, investment rates, R&D intensity, and secondary school enrollment all significantly explain differences in productivity growth. The article concludes that convergence ended in the 1990s partly due to sluggish European and Japanese growth and the narrowing of the productivity gap with the United States, which itself was accelerating.

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