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.
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- J. Bradford De Long, .
"Productivity Growth, Convergence, and Welfare: Comment,"
J. Bradford De Long's Working Papers
_129, University of California at Berkeley, Economics Department.
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- Marvin Goodfriend & John McDermott, 1994.
94-02, Federal Reserve Bank of Richmond.
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- 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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3528, National Bureau of Economic Research, Inc.
- Lant Pritchett, 1997.
"Divergence, Big Time,"
Journal of Economic Perspectives,
American Economic Association, vol. 11(3), pages 3-17, Summer.
- Ian Harrison, 1987. "Economic review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 50, september.
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