Productivity World is a term used by William Easterly

William Easterly

William Russell Easterly is an American economist, specializing in economic growth and foreign aid. He is a Professor of Economics at New York University, joint with Africa House, and Co-Director of NYU’s Development Research Institute. He is also a nonresident senior fellow at the Brookings...

 to describe that relative productivity

Productivity

Productivity is a measure of the efficiency of production. Productivity is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input...

 among Factors of production

Factors of production

In economics, factors of production means inputs and finished goods means output. Input determines the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called a production function...

 is the same in the sectors across countries, but rich countries have absolute productivity advantage.

It is used as the opposite of Factor world

Factor world

Factor World is a term used by William Easterly to describe the traditional model of aggregate production function which is: Y = K^α . ^...

 which claims Factors of production

Factors of production

In economics, factors of production means inputs and finished goods means output. Input determines the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called a production function...

movement based on free movement of those factors which in theory would reduce inequality between nations.