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© 1995

Convergence, Divergence and Changing Trade Patterns

Theoretical Inquiries into the Role of Preferences, Factor Accumulation, Technological Change and Government Intervention

Book

Part of the International Economics and Institutions book series (INTERNAT.ECON.)

About this book

Introduction

1. Introduction and overview Until still few years ago, economic growth theory (going back to Solow, 1956; for an introduction cf. Burmeister and Dobell, 1970) predicted convergence of both growth rates and level of per capita income of economies which share identical preferences, technologies and same population growth rates, independently of initial conditions. Countries with a low capital stock grow faster than those with a higher capital stock, until, in the long-run, they all converge to a common constant growth rate. This prediction is due to the way how growth is "explained" in models of this kind. Growth of output per capita resulted, in the simplest model, from an exogenous growth oflabour productivity (see e. g. Sala-i-Martin, 1990; Grossman and Helpman, 1991a, ch. 2). Si!1ce this increase of productivity is exogenously given, the model itselfdoes not give any explanation ofits source. The prediction ofconvergence ofgrowth rates, itself, is very doubtful and observations show, that on an international level either convergence is not given at all, or that it takes a very long time. The literature of the "new" theory of growth provides a rich variety of models whose theoretical implications range from divergence to convergence and thus offers much better working tools in order to analyze real world observations. These models (starting with Romer, 1986 and Lucas, 1988) explain growth of GNP or per capita income from within the model by includingexternal effects such as a public stock ofknowledge capital (e. g.

Keywords

Convergence Handelsmuster Konvergenz Technological Change Trade Patterns innovation research science and technology technologischer Wandel

Authors and affiliations

  1. 1.Department of MacroeconomicsUniversity of AmsterdamAmsterdamThe Netherlands

Bibliographic information

  • Book Title Convergence, Divergence and Changing Trade Patterns
  • Book Subtitle Theoretical Inquiries into the Role of Preferences, Factor Accumulation, Technological Change and Government Intervention
  • Authors Klaus Wälde
  • Series Title International Economics and Institutions
  • DOI https://doi.org/10.1007/978-3-642-50034-3
  • Copyright Information Physica-Verlag Heidelberg 1995
  • Publisher Name Physica, Heidelberg
  • eBook Packages Springer Book Archive
  • Softcover ISBN 978-3-7908-0878-0
  • eBook ISBN 978-3-642-50034-3
  • Edition Number 1
  • Number of Pages XI, 149
  • Number of Illustrations 1 b/w illustrations, 0 illustrations in colour
  • Topics International Economics
    R & D/Technology Policy
  • Buy this book on publisher's site
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