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Unconditional Convergence in Manufacturing Productivity across U.S. States: What the Long-Run Data Show

Alexander Klein and Nicholas Crafts

No 18065, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper examines long-run unconditional convergence of labour productivity in manufacturing across 48 contiguous U.S. states. For that purpose, we construct a detailed panel data set of state-industry pairs with over 120 industries covering the period 1880-2007. We find that unconditional β-convergence in manufacturing productivity was pervasive and rapid – 7.6% per year in 1880-2007 – and that manufacturing accounts for most of the unconditional convergence contribution to overall productivity growth over the long run: 61% in 1880-1940 and 91% in 1958-2007. We also examined broad U.S. regions and found that in the South the contribution of unconditional β-convergence in manufacturing to aggregate productivity growth before World War II was weak not because of a slower convergence rate but a much smaller manufacturing sector.

JEL-codes: N11 N12 O47 R11 (search for similar items in EconPapers)
Date: 2023-04
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Working Paper: Unconditional Convergence in Manufacturing Productivity across U.S. States: What the Long-Run Data Show (2023) Downloads
Working Paper: Unconditional Convergence in Manufacturing Productivity across U.S. States: What the Long-Run Data Show (2023) Downloads
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