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Economic Integration and Income Convergence: Not Such a Strong Link?

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  • Branko Milanovic

    (Development Research Group, World Bank and Carnegie Endowment for International Peace)

Abstract

We would expect that the process of globalization between 1870 and 1914 and subsequent disintegration of the world economy during the interwar period would have led first to income convergence and then to income divergence between the participating countries. But in fact we find stronger evidence for income convergence during the interwar period than during the first globalization. Similarly, the average level of import protection in the world cannot be shown to have either helped or hampered convergence. The evidence for trade-induced convergence is therefore weak. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 88 (2006)
Issue (Month): 4 (November)
Pages: 659-670

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Handle: RePEc:tpr:restat:v:88:y:2006:i:4:p:659-670

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Cited by:
  1. Valeria Costantini & Paolo Liberati, 2011. "Technology transfer, institutions and development," Departmental Working Papers of Economics - University 'Roma Tre' 0135, Department of Economics - University Roma Tre.
  2. René Cabral & André Mollick, 2012. "Mexico’s regional output convergence after NAFTA: a dynamic panel data analysis," The Annals of Regional Science, Springer, vol. 48(3), pages 877-895, June.
  3. Ferreira, Francisco H.G. & Ravallion, Martin, 2008. "Global poverty and inequality : a review of the evidence," Policy Research Working Paper Series 4623, The World Bank.
  4. Iván Arribas & Francisco Pérez & Emili Tortosa-Ausina, 2014. "The dynamics of international trade integration: 1967–2004," Empirical Economics, Springer, vol. 46(1), pages 19-41, February.
  5. repec:gen:geneem:12302 is not listed on IDEAS
  6. Arribas Fernández Iván & Pérez García Francisco & Tortosa-Ausina Emili, 2008. "On the Dynamics of Globalization," Working Papers 201088, Fundacion BBVA / BBVA Foundation.
  7. Xuepeng Liu, 2009. "Trade and income convergence: Sorting out the causality," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 18(1), pages 169-195.
  8. Stefan Sperlich & Yvonne Sperlich, 2012. "Growth and Convergence in South–South Integration Areas: Empirical Evidence," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 12032, Institut d'Economie et Econométrie, Université de Genève.

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