International Convergence and Divergence of Material Input Structures: An Industry-Level Perspective

Abstract

This paper analyzes whether international material input structures have converged or diverged over time. Pooled variances for 25 industries were obtained from OECD input-output tables in constant prices for nine countries over the period 1971-1990. It is found that high-tech industries were mainly characterized by divergence of material input structures, whereas convergence was found for many low-tech, more mature industries. In line with studies on (labor) productivity growth rates, convergence of material input structures was prevalent in the 1970s, while divergence dominated in the 1980s.