Productivity Convergence across Industries in the United States, Japan, and Germany

Download full PDF article

Abstract

This article examines industry-level productivity convergence and divergence between the United States, Japan, and Germany over the post-war period, using both value-added labour productivity and TFP (via dual approach with GGDC PPPs). It finds that while aggregate convergence of Japan and Germany toward the U.S. was substantial in the 1950s-1980s, this process has largely stalled or reversed in many industries since 1990. The pattern of convergence and divergence varies substantially by industry, with manufacturing generally still converging and services diverging in several cases.

Download full PDF