Industrial development and the convergence question
The paper studies endogenous world balanced growth equilibria in which national learning productivity differentials govern relative per capita products. Learning productivities depend on the national share of world specialized-goods production, national and world scale, and familiarity with the foreign economy. Familiarity indexes the extent to which imported specialized goods enhance learning productivity. We find that mutual familiarization causes per capita products to converge. Unfamiliar economies diverge substantially and persistently. Unilateral familiarization of a less-developed country (LDC) with the leading economy causes the LDC to catch up to, and even overtake, the leader.
|Date of creation:||1999|
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References listed on IDEAS
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- Pritchett, Lant, 1995.
"Divergence, big time,"
Policy Research Working Paper Series
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- Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
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American Economic Review,
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- Marvin Goodfriend & John McDermott, 1994.
94-02, Federal Reserve Bank of Richmond.
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NBER Working Papers
3528, National Bureau of Economic Research, Inc.
- Ian Harrison, 1987. "Economic review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 50, september.
- Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 369-405.
- Duncan Black & Vernon Henderson, 1997. "Urban Growth," NBER Working Papers 6008, National Bureau of Economic Research, Inc.
- Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
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