Income Convergence within and between Countries

Ronald Fischer and Pablo Serra

International Economic Review, 1996, vol. 37, issue 3, 531-51

Abstract: The authors study how trade changes the rate of income convergence within and between countries in a model of endogenous growth. An externality in the production of human capital implies that inequality slows down growth under autarky. Eventually incomes converge, raising the growth rate. Trade accelerates (slows down) growth and the rate of income convergence in the poor (rich) country. In the long run, trade ensures that countries grow at the same rate and that the ratio of their incomes tends to one. Trade pattern reversals are possible since the initially wealthy country may be overtaken by the poor country. Copyright 1996 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (15)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ier:iecrev:v:37:y:1996:i:3:p:531-51

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598

Access Statistics for this article

International Economic Review is currently edited by Harold L. Cole

More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and ().