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Copyright © Cambridge Political Economy Society

research-article

The productivity convergence debate: a theoretical and methodological reconsideration

Bruce Elmslie and William Milberg

University of New Hampshire
New School for Social Research New York

Abstract

Two fundamental issues which have been ignored in the convergence debate are addressed in this paper. First, there has been little attention paid to the development of a general model which is able to explain convergence or divergence. Second, in the rush to put data to a convergence hypothesis, researchers have failed to consider certain methodological procedures with respect to the treatment of capital. To remedy this problem we use an input-output approach to measure catch-up. To address the theoretical lacunae we present case studies of Portugal and Japan, two countries which by 1959 had attained the threshold level of development required to join the ‘convergence club’, but which, for various historical (path-dependent) reasons, have diverged rapidly from each other in the period since the late 1950s.

Manuscript received April 19, 1993; final version received October 14, 1993.


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