EconPapers    
Economics at your fingertips  
 

International convergence and local divergence

Adolfo Cristobal-Campoamor

No 008-08, Working Papers from International School of Economics at TSU, Tbilisi, Republic of Georgia

Abstract: This paper presents an East-West endogenous-growth model that reproduces recent stylized facts applicable to the trade liberalization process of many developing countries: convergence with the rest of the world, higher internal divergence, increasing spatial concentration of economic activity and higher growth rates. We claim that the ongoing reduction of manufacturing trade costs may generate a net inflow of global demand towards the industrialized cores of developing countries. This will induce a reallocation of labor from traditional to modern sectors. In turn, such a sectoral shift may enlarge the catch-up (imitation) potential of developing countries and raise global growth rates, due to Grossman and Helpman's complementarity between imitative and innovative activities. Although advanced economies may become relatively worse off, the effect on growth rates may allow them to gain in absolute terms.

JEL-codes: F43 R11 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2008-08
References: Add references at CitEc
Citations:

Downloads: (external link)
https://iset.tsu.ge/files/008-08.pdf First version, 2008 (application/pdf)

Related works:
Journal Article: International convergence and local divergence (2009) Downloads
Working Paper: International convergence and local divergence (2005) Downloads
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:tbs:wpaper:08-008

Access Statistics for this paper

More papers in Working Papers from International School of Economics at TSU, Tbilisi, Republic of Georgia Contact information at EDIRC.
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).

 
Page updated 2025-02-13
Handle: RePEc:tbs:wpaper:08-008