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Convergence and International Factor Flows in Theory and History

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  • Alan M. Taylor

Abstract

Standard neoclassical growth models rarely admits international factor mobility: convergence may result from factor accumulation in a closed economy, or from technology transfer. Conventional models are thus poorly equipped to explain the contribution of international factor flows to convergence in history. A general model with many goods, and multiple mobile and fixed factors is developed. In response to recent historical research, a four-factor case is studied, with labor, capital, and resources as potentially mobile factors, and land fixed. The model is then explored in the context of recent historical analyses of the sources of long-run convergence and divergence.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5798.

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Date of creation: Oct 1996
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Handle: RePEc:nbr:nberwo:5798

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  1. Alan M. Taylor, 1996. "International Capital Mobility in History: The Saving-Investment Relationship," NBER Working Papers 5743, National Bureau of Economic Research, Inc.
  2. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
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Cited by:
  1. HISATAKE Masato, 2005. "Japan's Past, Present and Future in East Asia: Thoughts from the Perspective of the Transformation of Urban Agglomerations (Japanese)," Policy Discussion Papers (Japanese) 05003, Research Institute of Economy, Trade and Industry (RIETI).
  2. Taylor, Alan M., 1999. "Sources of convergence in the late nineteenth century," European Economic Review, Elsevier, vol. 43(9), pages 1621-1645, October.
  3. Klundert, T.C.M.J. van de & Smulders, J.A., 1998. "Capital Mobility and Catching Up in a Two-Country, Two-Sector Model of Endogenous Growth," Discussion Paper 1998-13, Tilburg University, Center for Economic Research.

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