Productivity and Convergence in OECD Service Industries

[en] The objective of this paper is threefold. First, to estimate the productivity performances realized in service and manufacturing industries by 13 OECD countries over the period 1970-1987. Secondly, to compare the productivity indicators computed under the alternative frontier analysis and Divisia index approaches. Thirdly, to test the convergence phenomenon in both industries, focusing on the catching-up process and on the interaction between productivity changes and capital intensity variations. The main results show that, contrary to the manufacturing sector and in spite of very low growth rates, productivity levels converge in services. Moreover, new investments in capital appear to exert an unexpected depressive effect on total factor productivity growth in service activities, while having a positive influence in manufacturing industries.

Research center :

CREPP - Centre de Recherche en Économie Publique et de la Population - ULiège

Disciplines :

Economic systems & public economics

Author, co-author :

Gouyette, Claudine

Perelman, Sergio ; Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie publique appliquée

Language :

English

Title :

Productivity and Convergence in OECD Service Industries

Publication date :

1997

Journal title :

Structural Change and Economic Dynamics

ISSN :

0954-349X

Publisher :

Elsevier Science

Volume :

Pages :

279-295

Peer reviewed :

Peer Reviewed verified by ORBi

Available on ORBi :

since 17 February 2010

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