David Dollar and Edward Wolff look at claims that a deindustrialized United States is on the road to secondrate status in the global marketplace and find them to be both unfounded and simplistic. Their systematic and empirical investigation of the mechanisms through which countries like Japan and Germany have caught up with the United States in terms of productivity and standard of living will inform public debate about which government policies are likely to improve a nation's competitiveness. Looking at productivity convergence from the industry and subindustry level, Dollar and Wolff also examine questions of the relationship of productivity growth in individual industries to convergence of overall productivity in developed countries, theidentification of industries crucial for aggregate productivity growth, the sources of productivity growth within industries, the relationship between international trade and productivity convergence, and whether the same mechanics of...

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