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The efficiency of the row-orientated update procedure makes it possible to incorporate structural changes immediately.
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Furthermore, if we do not incorporate structural change, convergence speed may be over- or underestimated.
Furthermore, these findings also suggest that without incorporating structural changes into the analysis of productivity convergence, the speed of convergence could be over- or underestimated at the aggregate and disaggregate levels.
The speed of convergence at the regional level is faster than the speed of convergence at the country level for both without and with structural change, i.e. 8.6 and 12.2 % compared to 3.4 and 1.5 %, respectively.17 Furthermore, the speed of convergence at the regional level has increased after incorporating structural changes, contrary to the country-level results.
The speed of convergence appears to be different before and after incorporating structural change.
The second question was: if so, has the speed of convergence changed with (and without) incorporating structural change?
Second, if so, it will investigate whether the speed of convergence changed with (and without) incorporating structural change.
The first question was: is there sufficient evidence of convergence after incorporating structural change at different levels of data?
More precisely, at the country level, the speed of convergence before incorporating structural change was 3.4 % per annum, but after that, it was reduced to 1.5%% per annum.
This may be due to the fact that some of the dynamics in labour productivity are not captured by without incorporating structural change.
Similarly, at the industry level, the speed of convergence after incorporating structural change was reduced from 2.5 to 1.5 % per annum.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com