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Did globalization drive convergence? Identifying cross-country growth regimes in the long run

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  • Di Vaio, Gianfranco
  • Enflo, Kerstin

Abstract

This paper is the first to apply a finite mixture model to a sample of 64 nations to endogenously analyze the cross-country growth behavior over the period 1870-2003. Results show that growth patterns were segmented in two worldwide regimes, the one characterized by convergence in per capita income, and the other by divergence. Interestingly, when three historical epochs are distinctly analyzed, in order to investigate the empirical link between globalization and convergence, the dynamics which dominated over the whole period seem to have emerged only during the post-1950 years. In contrast, the First Global Wave was marked by persistent heterogeneities.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 55 (2011)
Issue (Month): 6 (August)
Pages: 832-844

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Handle: RePEc:eee:eecrev:v:55:y:2011:i:6:p:832-844

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Keywords: Globalization Economic growth Income convergence Multiple regimes Mixture models;

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Cited by:
  1. Flachaire, Emmanuel & García-Peñalosa, Cecilia & Konte, Maty, 2014. "Political versus economic institutions in the growth process," Journal of Comparative Economics, Elsevier, vol. 42(1), pages 212-229.
  2. Michele Battisti & Christopher F. Parmeter, 2011. "Income Polarization, Convergence Tools and Mixture Analysis," Working Papers 2011-17, University of Miami, Department of Economics.
  3. Rodríguez, Francisco & Shelton, Cameron A., 2013. "Cleaning up the kitchen sink: Specification tests and average derivative estimators for growth econometrics," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 260-273.
  4. Maty Konte, 2013. "A curse or a blessing? Natural resources in a multiple growth regimes analysis," Applied Economics, Taylor & Francis Journals, vol. 45(26), pages 3760-3769, September.

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