Do poor countries catch up to rich countries? Review article on productivity convergence: theory and evidence by Edward Wolff

Abstract

This article provides a detailed review of Edward Wo lff’s Productivity Convergence: Theory and Evidence. Wolff examines the long run productiv ity growth and convergence experience of a variety of countries from across the world. Wo lff’s main contribution is the definition of two general classes of forces of convergence. He del ineates “strong” forces of productivity convergence, such as the catch-up effect, capital fo rmation, and education, from “weak” forces contributing to convergence like internation al trade, economic geography, and regulation. While some of the individual forces of c onvergence may switch categories as new research emerges, the categorization remains hi ghly 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 p roductivity growth may well still come from forces of convergence for years to come.