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Productivity in Emerging-Market Economies: Slowdown or Stagnation?

Author

Listed:
  • José De Gregorio

    (Peterson Institute for International Economics)

Abstract
This paper analyzes productivity growth trends in emerging-market economies vis-à-vis advanced economies, both in the recent global productivity slowdown and from a long-term perspective. While income has converged in most countries in the last three decades, total factor productivity has diverged. Periods of high productivity growth coincide with episodes of output accelerations, while during normal times productivity growth is modest. Most recently, the correlation between productivity growth in emerging markets and advanced economies has increased. This paper analyzes potential factors explaining this increase, which presumably is due to the slowdown in trade and microeconomic factors that underlie technology diffusion. It concludes with a discussion of long-term challenges and opportunities facing emerging-market economies in a low productivity environment.

Suggested Citation

  • José De Gregorio, 2018. "Productivity in Emerging-Market Economies: Slowdown or Stagnation?," Working Paper Series WP18-12, Peterson Institute for International Economics.
    • Handle: RePEc:iie:wpaper:wp18-12
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    More about this item

    Keywords

    Productivity growth; Emerging markets; Income convergence;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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