Income convergence during the disintegration of the world economy, 1919-39
AbstractSome economists have argued that the process of disintegration of the world economy between the two world wars led to income divergence between the countries. This is in keeping with the view that economic integration leads to income convergence. The paper shows that the view that the period 1919-39 was associated with divergence of incomes among the rich countries is wrong. On the contrary, income convergence continued and even accelerated. Since the mid-19th century, incomes of rich countries tended to converge in peacetime regardless of whether their economies were more or less integrated. This, in turn, implies that it may not be trade and capital and labor flows that matter for income convergence but some other, less easily observable, forces like diffusion of information and technology.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2941.
Date of creation: 31 Jan 2003
Date of revision:
Environmental Economics&Policies; Fiscal&Monetary Policy; Payment Systems&Infrastructure; Economic Theory&Research; Services&Transfers to Poor; Economic Theory&Research; Trade and Regional Integration; Environmental Economics&Policies; Inequality; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT;
Other versions of this item:
- Branko Milanovic, 2003. "Income Convergence During The Disintegration Of The World Economy 1919-39," Economic History 0303002, EconWPA.
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-16 (All new papers)
- NEP-DEV-2004-08-16 (Development)
- NEP-HIS-2004-09-12 (Business, Economic & Financial History)
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