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The view that war benefits potential output has been influential in treatments of US mobilization for the Second World War, where it has been largely premised on the benefits of learning by doing in producing military durables. If the thesis that war benefits aggregate supply is correct, it is indeed within manufacturing that we should most likely see its effects. Total factor productivity within...
Whereas manufacturing seems to hold the key to modern economic growth, the role of manufacturing in economy‐wide convergence across countries is debatable. One strand of scholarship argues that productivity levels in manufacturing tend to remain stable across countries, and that economy‐wide convergence takes place through structural transformations. Another strand maintains that productivity levels...
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