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Trade and Convergence: A New Approach and New Evidence

Omid Ranjbar () and Farhad Rassekh

The IUP Journal of Applied Economics, 2011, vol. X, issue 1, 26-36

Abstract: : Whether international trade has any effect on income convergence across countries remains an open question. The present paper addresses this question by employing a novel approach and a new model over the period 1960-2003. By splitting the sample into two subperiods, it is found that the impact of trade on convergence has changed over time. This finding explains the conflicting reports in the literature on the impact of trade on convergence.

Date: 2011
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Handle: RePEc:icf:icfjae:v:10:y:2011:i:1:p:26-36