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Analysis of the Great Divergence under a Unified Endogenous Growth Model

  • Kunting Chen

    (Business School, Ningbo University)

Registered author(s):

    Recently published research that attempts to explain the Great Divergence mainly focuses on geography, technological progress, and international trade. However, we do not believe these are its only - or even the most basic - causes. Instead, we submit that the 'social culture' of a country or a region is the most fundamental reason and incorporates these other causes, thereby providing a reasonable unified explanation. This paper is mainly based on a very simple two-sector benchmark model that simulates the economic characteristics of England and the Yangzi Delta of China during 1400-1850. It explores aspects of this transition period, and obtains many meaningful results that are consistent with Unified Growth theory, which is usually based on very complex models.

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    File URL: http://down.aefweb.net/AefArticles/aef130204Chen.pdf
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    Article provided by Society for AEF in its journal Annals of Economics and Finance.

    Volume (Year): 13 (2012)
    Issue (Month): 2 (November)
    Pages: 317-353

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    Handle: RePEc:cuf:journl:y:2012:v:13:i:2:n:4:chen
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