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Equilibrium, convergence, and capital mobility in neoclassical models of growth

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Author Info
Birchenall, Javier A.

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Abstract

We study convergence in economies integrated by capital trade. Equilibrium generates transitional dynamics even in the absence of internal adjustment costs or borrowing constraints. Trade lowers the speed of convergence of capital-importing economies but increases the convergence of capital-exporting economies.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4NS0KJH-8/1/0d85ac3f98bb6c20b2df19951a33dc3e
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 99 (2008)
Issue (Month): 1 (April)
Pages: 10-13
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Handle: RePEc:eee:ecolet:v:99:y:2008:i:1:p:10-13

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Web page: http://www.elsevier.com/locate/ecolet

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